JP Morgan considering a new blockchain-based settlement token

JP Morgan Chase & Co. could soon make a caller blockchain-based integer deposit token, according to reports from Bloomberg connected Sept. 7.

The caller token would let for faster cross-border payments and settlements. In fact, JP Morgan has reportedly built the infrastructure needed to grip transactions for the token, based connected statements from anonymous sources acquainted with the matter.

JP Morgan has not yet initiated the instauration of the token, arsenic this would necessitate support from U.S. regulators – a process the institution has not started. Bloomberg cited statements from a JP Morgan spokesperson indicating that the slope recognizes regulators’ “thoughtful and diligent” attack to approvals.

Nevertheless, JP Morgan could reportedly present the token and commencement offering it to clients wrong a twelvemonth of support from regulators.

Similar to JPM Coin, but different

It appears that the planned token is akin successful immoderate ways to the company’s existing JPM Coin. Based connected the reporting, the upcoming deposit tokens correspond lawsuit deposits and are moved connected blockchain rails. JP Morgan’s website similarly describes JPM Coin arsenic representing dollars “held connected deposit” and circulating connected the company’s distributed ledger, described elsewhere connected the leafage arsenic a blockchain.

Like JPM Coin, the caller token would beryllium restricted to slope usage alternatively than retail use, and it would trust connected know-your-customer (KYC) and compliance systems.

However, the planned deposit token would disagree from JPM Coin successful circumstantial ways. Notably, the caller token would let wealth to beryllium sent to different banks. It could besides beryllium utilized to settee trades involving tokenized securities and fiscal instruments. Furthermore, the caller deposit token could beryllium offered successful a assortment of currencies isolated from the U.S. dollar — though JPM Coin itself expanded to enactment the euro this year.

Bloomberg cited an earlier connection successful which JP Morgan expressed optimism for deposit tokens, stating that believes specified assets volition go a “widely utilized signifier of money.” One of the company’s 2022 aviator projects besides progressive deposit tokens.

The station JP Morgan considering a caller blockchain-based colony token appeared archetypal connected CryptoSlate.