Remember JP Morgan? The billion-dollar investment bank that made a remarkable U-turn, from engaging in Bitcoin bashing to introducing its own digital asset in early 2019? Well, the bank has once again stoked the cryptocurrency realm, or at least, institutions that are interested in virtual currencies.
According to a report by Bloomberg, the Jamie Dimon-led bank has far-reaching ambitions for its JPM Coin. With interest emanating from clients within the United States, Europe, and Japan, the Dollar-backed digital coin might be employed in the internal coffers of the bank’s bonds division.
Quoting Morgan’s Head of Digital Treasury Services and Blockchain, Umar Farooq, JPM Coin could implement the “instant” delivery of bonds via the blockchain. Farooq is very optimistic about the prospects of digital assets used by banking institutions in the long run. He stated,
“We believe that a lot of securities over time, in five to 20 years, will increasingly become digital or get tokenized.”
He added that for transactions relating to bonds, the JP Morgan internal digital asset would enable traders to deliver securities instantly for cash.
On the buyer’s side of the transactions, prior to the same, the JPM Coin will be purchased and placed in a deposit account with the bank. On the seller’s side, the bonds will be in the form of tokens, thereby enabling uniformity. The entire process will work on the basis of blockchain technology, which will be private to the bank.
Farooq added that the test-phase for the JPM Coin could begin later this year, provided if the big bank secures the required regulatory approval. The bank will probably bring in “few clients” into this testing phase to primarily check the pace and propensity at which the funds-transfer takes place.