J.P. Morgan has recently activated the settlement of payments in euros with its new currency JPM Coin.
JP Morgan made its first Blockchain transaction for its corporate clients in Europe, using its own token. Said JPM Coin transaction was executed by Siemens AG, a major conglomerate based in Germany, and was denominated in euros on the JP Morgan permissioned Blockchain.
This is the first JPM Coin transaction denominated in euros, a bank executive told Bloomberg.
The permissioned Blockchain is a distributed ledger that is not accessible to the public. JP Morgan has specified that JPM Coin is exclusively available to its institutional clients and is used exclusively for payment settlement.
In addition, banks and other companies in the traditional financial sector (TradFi) are exploring ways to take advantage of Blockchain technologies within their businesses. For them, in fact, transacting on a Blockchain represents a potential means of safely speeding up the settlement process.
In 2019, JP Morgan introduced its Coin Services division, which enabled 24/7 transfers between client accounts using the Blockchain instead of traditional bank transfers.
Additionally, general ledger transactions are no longer limited to business hours, but can take place on any day and time.
Although four years have passed, the volume of transactions with JPM Coin is around 300 billion dollars. Not only that, JP Morgan also claims to process around 9.8 trillion payments daily.
Use of USDC by SAP and Circle
JP Morgan clients are not the only ones using cryptocurrency for business transactions. Recently, the German software giant. SAP announced the use of US Dollar Currency (USDC) by Circle to test cross-border payments.
SAVIA, the largest software company outside the US by revenue, said this speeds up the process for small and medium-sized businesses (SMBs) looking to send money abroad. USDC is one of the stablecoins, that is, a cryptocurrency linked to a stable asset, in this case, the US dollar.
The firm also announced that customers now have the option to receive USDC as “play money” to test the payment option. Said tests will be done on a separate Blockchain from Ethereum, and will not yet involve real tokens worth $20 ERC.
JP Morgan Partnership with Six Indian Banks
According to a Bloomberg report on June 5, banking giant JP Morgan has announced a partnership with six major Indian banks, to develop a Blockchain-based platform that will facilitate interbank settlement of dollar transactions.
The banks involved include HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, Indusind Bank, and JPMorgan’s banking unit in Gujarat International Finance Tec-City known as GIFT City.
The objective of the Blockchain project is to enhance and improve the capabilities of the existing settlement system, as Kaustubh KulkarniJPMorgan, Senior Country Officer, explains:
“By leveraging Blockchain technology to seamlessly facilitate transactions, the processing is instant and allows GIFT City banks to support their own time zone and hours of operation.”
According to the report, the initiative also aims to support New Delhi in positioning GIFT City as an alternative shopping center to Singapore and Dubai.
According to the information available, in April 2023 the bank would have processed short-term loan operations for almost 700 billion dollars, through the Onyx platform, which was introduced in 2020 as a means to improve the quality of wholesale payment transactions.
By Audy Castaneda
