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JPMorgan is rolling out the first US bank-backed cryptocurrency

JP Morgan Chase & Co, revealed yesterday it plans to launch its own digital coins which is called by the name as “JPM Coins”, that customers will be able to use for the instant transfer of payments over a blockchain network.

The largest US bank by the assets said the customers, that on depositing money at the bank will be issued the cryptocurrency that they will be able to use for the purpose of transactions over the network with other JPMorgan clients.

The coin can be redeemed for a US dollar, so its value will largely remain stable, the bank revealed.

When one client sends money to another cover the blockchain, JPM Coins are transferred ad instantaneously redeemed for the equivalent amount of the US dollars, which even reduces the typical settlement time, the bank said.

“As a globally regulated bank, we believe we have a unique opportunity to develop the capability in a responsible way with the oversight of our regulators,” said JPMorgan’s Head of digital treasury services and blockchain Umar Farooq.

JPMorgan also said that it believed that in the potential of blockchain technology and even expects its new digital coin to yield significant benefits for the blockchain use by reducing clients counterparty and settlement risk, decreasing capital requirements and enabling instant value transfer.

JPMorgan said that its new coin, which will be going to be issued on it’s in house blockchain technology Quorum, was currently a prototype. The company plans to make the coin-operable on all the standard blockchain networks.

Picture Credits: JPMorgan

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