JPMorgan Bank Implements JPM Coin for Euro-Denominated Transactions

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JPMorgan, a leading United States-centred investment bank, is expanding its blockchain-based project into traditional banking by deploying its payment system, JPM Coin, for euro-denominated payments. 

JPMorgan has now extended its JPM Coin blockchain platform from U.S. dollars to euros. The German conglomerate Siemens has reportedly become the first to process euro payments using JPM Coin.

The introduction of euro-denominated payments using JPM Coin allows corporate clients to transfer euros to and from their JPMorgan accounts instantly and around the clock. This represents a significant improvement compared to traditional banking transactions, which are typically restricted to business hours. 

Basak Toprak, JPMorgan's head of coin systems for Europe, the Middle East, and Africa, emphasised the cost benefits of timely payments, as clients could earn more interest income on their deposits.

Since its launch in 2019, JPM Coin has been aiming to revolutionise payments by leveraging blockchain technology. JPMorgan has already processed an impressive $300 billion transactions using JPM Coin, but the system has yet to reach its full potential. With daily payment volumes reportedly reaching approximately $10 trillion, JPMorgan is continuously working to scale the system.

JPM Coin is an integral component of JPMorgan's comprehensive blockchain-based platform called Onyx Coin Systems, which was introduced in 2020 to enhance the efficiency and effectiveness of wholesale payment transactions. As of April 2023, the bank has successfully facilitated nearly $700 billion in short-term loan transactions through the Onyx platform. This demonstrates JPMorgan's commitment to harnessing blockchain technology to drive innovation in the financial industry.

While JPMorgan expands its blockchain initiatives, the bank has recently faced regulatory scrutiny. The U.S. Securities and Exchange Commission (SEC) imposed a $4 million fine on JPMorgan for mismanagement of internal communications. In 2019, the bank inadvertently deleted approximately 47 million emails from its retail banking group, violating U.S. securities laws requiring financial firms to retain business records for at least three years.

JPMorgan's deployment of JPM Coin for euro-denominated payments marks another milestone in global adoption of blockchain technology within traditional banking. By leveraging the benefits of instant and efficient transactions, JPMorgan aims to enhance the payment experience for its corporate clients while exploring the potential of blockchain technology in the financial industry.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash