JP Morgan Creates First US Bank-backed Crypto

CNBC reports that J.P. Morgan Chase has created the first cryptocurrency from a major US bank. Dubbed “JPM Coin” for now, it will be used as a settlement token for transactions between its wholesale payments clients. The token operates similarly to a stablecoin, with each JPM Coin redeemable at $1 USD.

Anything that currently exists in the world, as that moves onto the blockchain, this would be the payment leg for that transaction[.] The applications are frankly quite endless; anything where you have a distributed ledger which involves corporations or institutions can use this.

[…]

Pretty much every big corporation is our client, and most of the major banks in the world are, too[.] Even if this was limited to JPM clients at the institutional level, it shouldn’t hold us back.

Umar Farooq, Head of JPM’s blockchain projects

The news may come as a surprise, given CEO Jamie Dimon’s continued trolling against Bitcoin (BTC):

The reality is that even traditional bastions like JP Morgan, with its strong opposition from top-down, needs to investigate and trial the growing application of blockchain technology. If nothing else, because the competitors are also sniffing around.

While only a small proportion of the settlements will use the digital ledger technology (DLT), we see this as a sign of the continued mainstream adoption by the banking sector.

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