Exec says JPMorgan may begin pilot testing JPM Coin by year end

25 Jun, 2019 | Updated: 25 Jun, 2019
by Richard Allen
Exec says JPMorgan may begin pilot testing JPM Coin by year end

JPMorgan’s in-house cryptocurrency has fallen off of the radar lately as Facebook’s Libra has been stealing headlines. However, JPMorgan is set to pilot-test its JPM Coin cryptocurrency later this year, Bloomberg reports.

As per the article, JPMorgan is reporting a surge in demand from clients in the US, Europe and Japan for a prototype of its digital coin to speed up the trading of securities such as bonds.  

Umar Farooq, head of digital treasury services and blockchain at JPMorgan said JPM Coin could see enable “instant” delivery of bonds on the blockchain. “We believe that a lot of securities over time, in five to 20 years, will increasingly become digital or get tokenized,” he said.

For bond transactions, Farooq explained that JPM Coin will allow traders to instantly deliver the securities in exchange for cash. The buyer purchases JPM Coin in advance and puts them in their JPMorgan deposit account. The seller’s bonds are represented in tokens, and computer programs then complete the transaction on the blockchain.

According to Farooq, JPM morgan will be pilot testing its upcoming stablecoin with a few clients to get a handle of how it speeds up transfers between them. If regulators approve, Farooq believes the US bank could begin testing near the end of the year.

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