Stop me if you've heard this before. Jamie Dimon (CEO of JPMorgan) trash talks bitcoin (and that's being kind), later back peddles some of those words and then announces that JPMorgan has developed its own cryptocurrency. To be sure, the JPM Coin is NOT bitcoin but obviously Jamie recognized some of the valuable aspects of a cryptocurrency. JP Morgan plans to start global trials of the JPM Coin sometime in the second quarter. It plans to use the token to settle a portion of client transactions in its wholesale payments business in real time. Further out, JPM has identified three main sectors for its token: 1) replacing international wire transfer payments for corporate clients to cut settlement time from days to minutes, 2) offering instant settlement for issuing securities, and 3) replacing U.S. dollars held by JPM's client corporations and their subsidiaries using the banks treasury services. Mobile payments to follow? Nice to see Jamie took a second look at bitcoin and its adaptation. Read more below.
(Bill Taylor/ Fintek Capital)
"While its CEO, Jamie Dimon, is notorious for his critical comments on bitcoin, investment bank JPMorgan is preparing for a future where blockchain is a key part of financial infrastructure with its own cryptocurrency.
Called JPM Coin, the token has been developed by engineers at the bank, according to a report from CNBC on Thursday, and is moving to real-world trials in “a few months”
For the effort, JPM Coin will be used to settle a small portion of its transactions between clients of its wholesale payments business in real time, CNBC says. The bank moves over $6 trillion daily as part of that business, it adds.
Speaking to the news source, Umar Farooq, JPMorgan’s blockchain lead, posited three main use cases for the bank token, including replacing wire transfers for international payments by large corporate clients and cutting settlement times from days to just moments.
It could also be used to provide instant settlement for securities issuance, as well as to replace U.S. dollars held internationally by subsidiaries of major corporations using JPMorgan’s treasury services..."
Full Story at Coinsmart