Siemens conducts first Euro payment with JPM Coin
JPMorgan (JPM) has expanded the usage of its blockchain-based settlement token, JPM Coin, to include euro-denominated payments.
The bank’s head of Coin Systems for Europe, Basak Toprak, revealed in an interview with Bloomberg that JPM Coin went live with euro payments on Wednesday. The first Euro-denominated payment on the platform was conducted by German tech conglomerate Siemens AG.
The trial took place on JP Morgan’s permissioned blockchain, a distributed ledger that is not open to the public and requires authorization for access. The platform enables the lender’s institutional clients to conduct wholesale payments across global accounts using blockchain technology as the underlying infrastructure.
JPM Coin serves as a payment rail and deposit account ledger, enabling participating entities to transfer fiat money held in deposit with the largest bank in the United States. Since its launch in 2019, the token has facilitated over $300 billion in transactions, establishing itself as one of the most prominent applications of blockchain technology by a traditional financial institution. That compares to JPMorgan’s daily transaction volume of nearly $10 trillion through conventional means.
JP Morgan Chase revealed last year that more clients had already begun using its own cryptocurrency to instantly send and settle payments around the world.
Dubbed ‘JPM Coin’, the stablecoin facilitates the transfer of payments between institutional clients, the latest step in Wall Street’s evolving approach to crypto space. However, the coin is available only for international payments for large corporate clients, that have undergone regulatory checks.
The New York-based lender started trials of its JPM Coin in conjunction with corporate clients with the ultimate aim of speeding up transactions, such as cross-border payments and corporate debt issuance.
The Central Bank of Bahrain also completed a successful overseas remittance trial enabled by JP Morgan’s digital currency. Bahrain’s Bank ABC initiated real-time payments for Aluminium Bahrain (Alba) with its counterparties in the US using the JPM Coin system.
JPMorgan, which its CEO, Jamie Dimon once bashed cryptocurrencies as a fraud that will not end well for its investors, created a new unit to handle its blockchain business called Onyx.