Investment banking giant JPMorgan has launched Euro-denominated blockchain payments for its corporate clients. Institutions can redeem this using the firm’s JPM Coin.
Basak Toprak, the company’s Head of Coin Systems for Europe, the Middle East, and Africa, confirmed to Bloomberg that the JPM Coin went live with Euro transactions a couple of days back. Germany’s Siemens AG conducted the first Euro payment on the platform. The coin was launched back in 2019 by the bank to help facilitate instant payments.
Pointing out the use cases, Toprak highlighted that Corporate Treasurers can use the system to effectively manage liquidity. For instance, payments can be initiated just before they are due. Elaborating on the same, Toprak said,
“There are cost benefits to paying at the right time. This could mean they could earn more interest income on their deposits.”
$300 Billion Worth of Transactions Already Processed by JPM Coin
Well, several banks and other financial firms from across the world have been experimenting with blockchain and its underlying assets lately. As reported earlier today, Japan’s largest Bank, Mitsubishi UFJ Financial Group [MUFG], is in talks with companies associated with prominent global stablecoins. Alongside, it is also discussing with firms about issuing such tokens via its own blockchain platform, Progmat.
Prior to that, Societe Generale, more commonly referred to as SocGen, introduced a stablecoin pegged to the Euro in April. The France-based multi-national financial services company’s asset, ‘EUR CoinVertible’ was deployed on the Ethereum public blockchain.
As far as the JPM Coin is concerned, the bank has already fostered $300 billion worth of transactions since its launch. Even though the amount might seem large at first, it should be noted that JPMorgan processes nearly $10 trillion worth of payments on a daily basis. Specifically, the bank’s system allows large corporations to transfer fiat from and to various JPMorgan accounts around the world.