Coming as a positive news for the crypto community, JPMorgan Chase is to begin trials of its “JPM Coin” virtual currency in union with corporate clients.
As per a report from Bloomberg Japan on Tuesday, the JP Morgan’s head of digital treasury services and blockchain, Umar Farooq mentioned that clients would trial the technology with the definitive aspiration of pacing up transactions. Notably, these also include payments between firms and bond transactions.
It is to be noted that the trials are being performed on the supposition that regulatory consent will eventually be granted, as per Bloomberg.
JP Morgan Coin, Quorum, Ethereum
Interestingly, JPM Coin was originally divulged in the month of February this year. Notably, JPM Coin, at the outset, runs on top of Quorum, a private version of ethereum developed by the bank.
Moreover, JPM cryptocurrency will allegedly function as a stablecoin, with fiat cash being deposited at the bank in exchange for the token. The token can then be relocated by means of a permissioned distributed ledger. Afterwards, the recipient can redeem the token for cash from JPMorgan.
JP Morgan Coin and US Dollar
The JPM cryptocurrency, initially linked to the United States dollar, is anticipated to be extended to other fiat currencies in time. As per a report at the time, real-world trials were expected in a few months.
In today’s report regarding JPM Coin’s state of development, Farooq told Bloomberg that the technology is first-rate, but it takes time in terms of licensing and consent. He added that it must be elucidate. He mentioned that the digital asset could be used to settle bonds and commodities transactions. As per Farooq, clients in several regions including Japan, Europe, and the US have already shown interest. The report further states that he would not name any companies involved in the upcoming trials.