JPM Coin, JPMorgan’s blockchain-based payment system, stands out as it enables the bank’s wholesale clients to perform U.S. dollar and euro transfers quickly and efficiently. Takis Georgakopoulos, JPMorgan’s global head of payments, recently announced that the daily transaction volume through JPM Coin has exceeded $1 billion.
Georgakopoulos mentions that JPM Coin was developed to address the inefficiencies in existing payment systems and aims to overcome three significant issues:
- Payment Speed: Traditional payment systems can be slow, especially for cross-border transactions. JPM Coin allows for faster transaction processing.
- Separation of Money and Information: In traditional systems, money and information move separately, making tracking and reconciliation of transactions more challenging. JPM Coin aims to solve this issue.
- Money Fungibility: JPM Coin is designed as a stablecoin pegged to the U.S. dollar at a 1:1 collateral ratio. This ensures the fungibility and stability of the currency.
Furthermore, JPM Coin initially supported only the U.S. dollar but expanded to include the euro in 2023.
According to data from announcements made in June 2023, it is evident that JPM Coin has gained increasing acceptance, with more than $300 million in transactions conducted through it since its launch in 2020. This demonstrates the growing adoption of JPM Coin.