JP-Morgan, the formerly crypto-critical banking giant, published a report in which it promises Bitcoin great potential as an alternative currency.
The bank is launching the JPM-Stablecoin. A major technology company is already using it for cross-border payments.
The bank wants to make its blockchain available to many other institutions and companies that have already shown interest.
Banking giant JP-Morgan, which has been critical of the crypto market in recent years, announced the launch of its stablecoin on October 27. The „JPM-Coin“ is to be used commercially and facilitate cross-border payments. JP-Morgan’s bank director announced that the coin is already live and a major technology company will use it starting this week.
Criticism turns into praise
Over the last few years, JP-Morgan CEO Jamie Dimon has been very critical of cryptocurrencies and Bitcoin. This opinion seems to have changed considerably. A few days ago, the bank issued a report in which it attributed great potential to Bitcoin as an alternative currency.
Particularly on a long-term basis JP-Morgan sees the development of Bitcoin positively. The bank also sees competition with gold. In addition, the bank’s own cryptocurrencies, which were announced for the first time in February 2019, are also entering the next phase.
JP-Morgan’s global head of wholesale payments, Takis Georgakopoulos, commented positively on the blockchain technology. Expectations have been exceeded and it is an economically viable product. The implementation of the plans will be handled by JP-Morgan’s subsidiary Onyx:
„Onyx has been established because we believe we are moving to a phase of commercialization of these technologies. We are moving from research and development, to something that can become a real business.”
The JPM-Coin introduces a stablecoin, which is covered by the bank’s own cash holdings. The coin is intended to facilitate cross-border payments between companies and banks. It is issued on the Quorum blockchain, which is based on Ethereum.
JP-Morgan blockchain as a network for other institutionals
Onyx built the so-called Liink network for the blockchain-project. This serves companies and institutions for secure and fast peer-to-peer data transmission. It is said that 25 of the world’s 50 largest banks and 400 companies have already shown interest in the project.
A further goal is the extension to the processing of payments. Since JP-Morgan moves around $6 trillion worldwide every day, this would be a good deal for the bank. The head of the Liink banking network, Christine Moy, sees this as the basis for a mainnet for companies. Moy now invites other institutions to use her Liink-blockchain-network to build their digital infrastructure:
„Liink participants have the ability to build applications on the network, and in doing so are able to spotlight their local expertise with global reach … If a Liink participant has specific expertise around payments in a particular region or currency, for example, it has the opportunity to build an application and deploy it on Liink to make it available to the network.”