The largest US investment bank created its own cryptocurrency

JPMorgan, the leading US financial holding, has developed its own steeblecoin called JPM Coin and intends to start experimenting with it in real conditions within a few months, writes CNBC .

JPM Coin was created by bank engineers, and its test trials will become part of a wider JPMorgan corporate payments initiative, where the bank processes transactions for $ 6 trillion daily.

As noted by the head of blockchain development, JPMorgan Umar Farouk, the organization sees widespread use of blockchain technology in the future, but before that happens, it needs a method that would provide money transfers at the same speed as smart contracts work.

He also identified three main areas of use for JPM Coin: international payments for large corporate clients, which currently occur primarily with obsolete networks like Swift, when transferring securities and for replacing dollars that corporations hold in JPMorgan storages.

According to Farouk, every unit of JPM Coin will be backed by a dollar. Customers will receive tokens after crediting the money to the bank, and upon completion of all necessary payments, JPMorgan will destroy them, returning deposits to the owners.

Over time, suggested Umar Farouk, JPM Coin can also be used for mobile payments.

“Almost all large corporations and banks in the world are our clients. But even if it was limited only by institutional clients of JPMorgan, this should not hold us back, ” he added.

It is assumed that only large institutional clients, such as corporations, banks and brokers-dealers, will take part in the test tests of JPM Coin.

Note that despite all the criticism with which JPMorgan head Jamie Dimon spoke against Bitcoin, the bank is quite actively interested in cryptocurrency and blockchain technology. So, in May last year, it became known that JPMorgan is creating its own cryptocurrency strategy . At the same time, the bank filed a patent application for a system involving the use of blockchain technology to speed up and verify financial transactions.

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