JP Morgan Might Have Just Killed The Ripple XRP Dream

JPMorgan set to move its in-house cryptocurrency to real-world trials

JPMorgan set to move its in-house cryptocurrency to real-world trials

There are other key differences between the bank's crypto and bitcoin, which J.P. Morgan CEO Jamie Dimon has bashed as a fraud that won't end well for its investors.

While 2018's cryptocurrency boom may be over, United States investment bank JP Morgan has launched its own digital coin to help settle payments between its clients as part of its wholesale payments business.

The JPM Coin will be issued on Quorum Blockchain and subsequently extended to other platforms.

Just last month, equity analysts at JPMorgan said blockchain could reduce transaction settlement time to minutes, lower transaction costs and provide parties with more clarity on payment cycles.

A breaking story from JP Morgan alleges that the bank is now launching the first U.S. bank-backed cryptocurrency.

Although the amount moved by JP Morgan's own cryptocurrency will reportedly be minuscule at first, there is nothing stopping these volumes from growing once JP Morgan has worked out all the kinks. JPM Coin will settle in real time, 24 hours a day.

The report relays that the bank backed crypto will be used initially to instantly settle worldwide payments between clients; "expanding further" if it proves successful. This digital token will serve to instantly settle payments between clients.

"The applications are frankly quite endless; anything where you have a distributed ledger which involves corporations or institutions can use this", he said in an interview February 14.

Secondly, JP Morgan's token may also be used for securities transactions.

The JPM Coins would be worth a dollar each, and would largely be used to speed up transactions, settlements, and treasury services, Umar Farooq, head of JPMorgan's blockchain projects, told CNBC.

Although some may be surprised by JP Morgan's decision to embrace a technology which some view as potentially superseding the traditional banking world, the bank has previously been clear that it recognizes the vast potential of blockchain technology.

While their integration doesn't seem to be happening any time soon, it is still very much on the agenda for the future; the creation of JPM coin only ushers this possibility forwards.

It could also be used to provide instant settlement for securities issuance, as well as to replace USA dollars held internationally by subsidiaries of major corporations using JPMorgan's treasury services.

Yes there is apparently - and the answer is JPM Coin. Unseen by retail customers, the business handles a significant chunk of the world's regulated money flows for companies from Honeywell International to Facebook, moving dollars for activities like employee and supplier payments.

Furthermore, as briefly touched upon this new interdiction of, what is an essentially a glorified stablecoin, will most likely only dilute the current supply of crypto rather than destroy it altogether, although those with hopes of a bitcoin reserve currency may have to put their ideas on the backburner while we see just how this now bank backed crypto turns out.

"Money sloshes back and forth all over the world in a large enterprise". Farooq continued that: "Is there a way to ensure that a subsidiary can represent cash on the balance sheet without having to actually wire it to the unit?" The latest and most telling evidence of this arrived this morning, when JPMorgan (JPM) said it had developed and tested a prototype of a digital coin. "That way, they can consolidate their money and probably get better rates for it".

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