The bank’s corporate clients can now transfer euros instantly and 24/7 using its blockchain platform Onyx Coin Systems.
JPMorgan, one of the largest investment banks in the United States, is expanding the use of its blockchain-based payment system, JPM Coin, into traditional banking.
Bloomberg reported on June 23 that the bank had deployed JPM Coin to enable euro-denominated payments for its corporate clients.
Basak Toprak, JPMorgan’s head of Coin Systems for Europe Middle East, and Africa said that JPM Coin went live with euro transactions on June 21.
According to Toprak, Siemens AG was the first to process a euro payment on the platform. The system allows wholesale payments for clients, including large multinational firms, to transfer euros to and from their JPMorgan accounts instantly and 24/7.
“This is a significant improvement compared to traditional banking transactions, which are usually processed only during business hours. There are cost benefits to paying at the right time. This could mean they could earn more interest income on their deposits.”
Basak ToprakA Blockchain-Based Payment Rail
JPM Coin is a live blockchain application that aims to provide an alternative payment rail running on the blockchain. Launched in 2019, JPM Coin is a digital token representing fiat currency on a distributed ledger.
Since its launch, JPMorgan has reportedly processed about $300 billion of transactions in JPM Coin. The bank is yet to scale the system as its overall daily payments volumes reportedly amount to roughly $10 trillion.
JPM Coin is part of JPMorgan’s blockchain-based platform, Onyx Coin Systems. As previously reported, JPMorgan launched Onyx in 2020 to improve the quality of wholesale payment transactions.
As of April 2023, the bank had reportedly processed nearly $700 billion in short-term loan transactions via Onyx.
