United States banking giant JPMorgan Chase is launching its own cryptocurrency, the JPM Coin, in a first for U.S. banking. In a move commentators may see as unlikely, the multinational lender will use its newly developed asset to increase settlement efficiency, initially within three of its operations.
Speaking to CNBC, Umar Farooq, who leads JPM’s blockchain focus, appeared buoyant on blockchain technology’s perspectives at the bank. JPM Coin will initially focus on international settlements by major corporations, helping speed up transactions that currently take a day or longer using extant options such as SWIFT.
The new coin operates on a blockchain exclusively commissioned by the bank and is exclusively accessible to a select group of institutional clients within the multinational financial institution. As a result, the typical method of purchasing JPM Coin through a digital asset exchange, akin to how you might buy blockchain-based digital currencies like Bitcoin or Ethereum, is not feasible.
Nonetheless, the bank does have intentions to broaden the coin’s accessibility, potentially extending access to those who hold accounts with J.P. Morgan. It is important to clarify, however, that there are currently no plans to offer access to the general public or support over-the-counter (OTC) trading of this stable coin.
If your aim is to invest in JPM Coin as a cryptocurrency, it’s crucial to reconsider your strategy. Due to its nature as a stable coin backed by the U.S. dollar, its value remains stable and won’t experience the price fluctuations commonly associated with many tokens in the market. Instead, its value remains closely tethered to the U.S. dollar.
Nevertheless, if you’re exploring stable coins as a means to preserve wealth or introduce stability into your investment portfolio, there are numerous other projects designed to fulfill this role. This story on the JPM Coin originally appeared on the Coin Telegraph website.
