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JPM Coin from JPMorgan boosts interbank transfers on Partior

EditorHari Govind
Published 05/12/2023, 16:00
© Reuters.
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NEW YORK - Partior, a blockchain-based payment system developed collaboratively by JPMorgan, DBS Bank, Temasek, and Standard Chartered (OTC:SCBFF), is set to revolutionize interbank transactions with the integration of JPM Coin. This move is expected to significantly enhance the speed and efficiency of multicurrency transactions and reduce banks' reliance on traditional correspondent banking.

The platform's specific adoption details remain under wraps; however, a report by Ledger Insights indicates active participation from DBS Bank. This development comes after JPMorgan received a no-objection letter from U.S. regulators, marking a significant step forward in the bank's blockchain endeavors.

Takis Georgakopoulos, a JPMorgan executive, disclosed in October that JPM Coin was used to settle over $1 billion daily. Umar Farooq, CEO of Onyx by JPMorgan, anticipates that transaction volumes could surge to $10 billion daily in a year or two. Such growth would signify a considerable shift in the market landscape.

Since receiving approval in May from the U.S. Comptroller to utilize Partior, JPM Coin has been enhancing its utility within the network. With over $400 billion handled since its inception in 2019, this stablecoin—pegged to the US dollar—was initially designed as an institutional real-time gross settlement tool. Now, it is expanding its reach into retail markets and managing euro-denominated payments, as evidenced by Siemens AG (OTC:SIEGY)'s inaugural transaction in early June through JPMorgan’s permissioned blockchain trial.

To further support these initiatives, JPM created Onyx blockchain platform to oversee the bank's blockchain projects. The expansion of JPM Coin into retail sectors and its growing transaction volumes reflect the evolving attitude towards digital currencies and their potential to reshape financial transactions on a global scale.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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