JP Morgan Chase expands onto blockchain and cryptocurrency: JPM Coin goes live
Still doubting the financial sector takeover by cryptocurrency? You had better not instead keep stacking good cryptos as well as diversify your assets/ holdings. Don't be a maximalists because it limits opportunities. I was excited to see in the news that even a banking company is now adopting cryptocurrency and blockchain technology, to the extent of creating its own stablecoin and a blockchain unit. This prompted me to do a little research and share with us. The crypto adoption is getting hotter by the day.
According to a study, JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City. This bank is one of the oldest financial institutions in the United States, with a history dating back over 200 years.
Also, JPMorgan Chase & Co. is ranked by S&P Global as the largest bank in the United States and the seventh largest bank in the world by total assets. In terms of market capitalization, it is also the world's most valuable bank. Noteworthy is that, JPMorgan chase has total assets of US$3.213 trillion.
Interestingly, JPMorgan Chase has joined in the cryptocurrency and blockchain adoption although their CEO, Jamie Dimon said Bitcoin is fraud sometimes ago. To further demonstrate their believe in cryptocurrency and blockchain technology, the American multinational investment banking and financial services company rolled out the first US bank-backed cryptocurrency to transform payments business, with the ticker "JPM" coin.
JPMorgan Chase announced that it had released its stablecoin about a year and a half after it was announced. The creation of JPM Coin can be traced back to February 2019. According to the coin founders,
Each JPM Coin is redeemable for a single U.S. dollar, so its value shouldn’t fluctuate, similar in concept to so-called stablecoins. Clients will be issued the coins after depositing dollars at the bank; after using the tokens for a payment or security purchase on the blockchain, the bank destroys the coins and gives clients back a commensurate number of dollars. - Source, CNBC
CNBC in a recent article noted that the JPMorgan Chase's digital currency, JPM Coin is now live. The news read that JPM Coin was being used commercially for the first time in October 2020 by a large technology client to send payments around the world. This was said by the bank’s global head of wholesale payments in the person of Takis Georgakopoulos.
The bank’s JPM Coin is now live with a large international technology company that is using it for round-the-clock cross-border payments, said Georgakopoulos, who declined to name the client. Other clients are being on-boarded, he said.
JP Morgan Chase now sees blockchain technology as another source of income. Hence, a new business/ blockchain unit has been created separately by JP Morgan and it is called ONYX. This new business is being created so as to house the bank's blockchain and digital currency efforts.
Ripple's coin, XRP appears to be having a competitor following trading of the JPM coin. Stablecoin was welcomed by Ripple in 2019 but now, the JPM stablecoin will be competiting with XRP in international transfers. On the whole, the coming live of the JPM coin is a welcimed development snd this move by JPMmorgan on crypto would likely provide a boost to the entire blockchain and cryptocurrency space.
Posted Using LeoFinance Beta
