JPM Coin Processes Daily Transactions Worth Over $1B – Exec

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.