JPMorgan Chase Developing Blockchain-Based Digital Deposit Token for Cross-Border Payments
JPMorgan Chase is developing a blockchain-based digital deposit token to speed up cross-border payments. According to a source familiar with the matter, the US’s biggest bank by assets has developed most of the initial infrastructure needed to run the new form of payment. However, they’ll have to wait for US regulators to approve.
- JPMorgan Chase is developing a blockchain-based digital deposit token for cross-border payments.
- The bank has developed most of the initial infrastructure needed for the new payment system.
- Approval from US regulators is required before the token can be launched.
- The token may be available for use by corporate clients less than a year after approval.
- Deposit tokens are transferable digital coins that represent a deposit claim against a commercial bank.
- Transactions with deposit tokens are processed and settled instantly on a digital blockchain.
“Deposit tokens bring plenty of potential benefits, but we also appreciate that regulators would want to be thoughtful and diligent before any new product gets developed and used,” a JPMorgan spokesperson said in a statement. “Should that appetite develop, our blockchain infrastructure would be able to support the launch of deposit tokens relatively quickly.”
Implementation of Crypto in Banking
Wall Street has looked to implement crypto as an underlying feature of payments and transactions for some time now. With JPMorgan looking to develop this blockchain deposit token, other big banks may look to follow suit in the coming months. The bank has been at the forefront of these efforts to add more technology to banking.
Currently, the bank runs a system called JPM Coin. The coin was announced back in 2019. It allows some JPMorgan corporate clients to move dollars and euros from their various accounts within the bank. Since launch, the system has processed some $300 billion in transactions, the bank said this summer.