JPMorgan, one of the largest banks in the United States, has announced the implementation of blockchain technology in its traditional banking activity. As part of this project, the bank has introduced a euro payment system for its corporate clients using JPM Coin. The first transaction in euros on the platform was carried out by the German company Siemens AG.
JPM Coin was launched in 2019 for operations in dollars, but now the project has been expanded to euros. JPM Coin is a rare case of a blockchain application, but it represents only a small part of the company’s payments business. Since its launch, the bank has used JPM Coin to process transactions worth around $300 billion. Compared to JPMorgan, which processes nearly $10 trillion a day, this is a paltry fraction.
The system allows large transnational corporations and other wholesale payment customers to transfer dollars or euros to various JPMorgan accounts around the world using blockchain technology instead of traditional payment systems. Payments with JPM Coin are made continuously, unlike traditional transactions, which are usually processed only during business hours.
Basak Toprak, head of JPMorgan’s currency systems department in Europe, the Middle East and Africa, stated:
”Paying at the right time is beneficial. This may mean they can get a higher return on their deposits.”
He also added that corporations can use this system to improve liquidity management, for example, by initiating payments before they are due.
The SEC recently fined JPMorgan for accidentally deleting old emails, but the bank agreed to settle the dispute and pay a $4 million penalty.
