Key points to remember
- JPM Coin, launched in 2019, expanded to euro-denominated transactions on June 21, after recording $300 billion in JPM Coin transactions.
- JPM Coin will be available 24 hours a day, 7 days a week, with a representative advising Bloomberg that this may improve clients’ investment success.
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JPMorgan is expanding the reach of its blockchain initiative, JPM Coin, to facilitate euro transactions for its corporate customers.
On June 21, the American investment banking titan expanded its blockchain platform JPM Coin, initially limited to USD transactions, to now include Euro payments, according to a Bloomberg report on June 23.
The first euro transaction was made by German conglomerate Siemens, Basak Toprak, head of Coin Systems for Europe, Middle East and Africa at JPMorgan, told Bloomberg. It is the same company that published a bond issue of 60 million euros in February 2023:
“By moving away from paper and towards public blockchains for issuing securities, we can execute transactions much faster and more efficiently than when issuing bonds in the past.”
The integration of this feature significantly improves traditional banking practices, offering wholesale payments to large corporations and allowing them to transfer Euros to and from their JPMorgan accounts quickly and at any time of the day.
The traditional system only processes transactions during business hours.
Toprak explained the cost-effectiveness of the new system, saying timely payments could lead to increased interest income on customer deposits, telling Bloomberg, “it could mean they could earn more interest income on their deposits.
JPM Coin, which debuted in 2019, aims to provide a parallel payment system based on blockchain technology. The bank is experiencing daily payment volumes of up to around $10 trillion, highlighting the potential for upside, as the bank reportedly processed around $300 billion in JPM Coin transactions.
Onyx Coin Systems, a blockchain-based platform spear by JPMorgan in 2020, houses the JPM Coin. The platform reportedly handled nearly $700 billion in short-term lending transactions in April 2023, aimed at improving wholesale payment transactions.
JPMorgan the bank would have erased about 47 million emails from its retail banking group, dating from January 1 to April 23, 2018, in violation of US securities regulations that require financial institutions to keep business records for at least three years. The U.S. Securities and Exchange Commission filed charges against the banking giant on June 22, 2023, with a $4 million fine for mishandling internal communications, according to Reuters.
