Takis Georgakopoulos, the global director of payments at JPMorgan, disclosed that the company handles daily transactions over $1 billion using its digital asset, JPM Coin.
In an interview with Bloomberg TV on October 26, Georgakopoulos identified three significant inefficiencies of the current payment systems:
- The speed of payments, particularly cross-border transactions.
- The separation of money and information makes tracking or reconciling transactions difficult.
- The fungibility of money.
JPMorgan is attempting to address these three issues with its digital asset, JPMorgan Coin, according to Georgakopoulos.
“Today, we move $1 billion every day through JPM Coin for a number of large companies.“
According to the executive, the next stage would be to create a retail version of the asset. While central bank digital currency (CBDC) is one option, banks also have the opportunity to establish a blockchain-based digital version of deposits.
JPM Coin is a stablecoin collateralized 1:1 with the U.S. dollar. Initiated in 2020, its sole purpose is to serve as a transitory mechanism for real-time gross settlement between institutional clients of JPMorgan.
JPMorgan reported in June 2023 that more than $300 million had been transacted using JPM Coin since its debut in 2020. The new data indicating that daily transactions exceed $1 billion represents a tremendous increase over the past four months.
Introducing euro-denominated transactions through the JPM Coin system in June may explain this.