JPMorgan Aims to Boost JPM Coin Transactions Tenfold, Targeting $10 Billion Daily Settlements in 1-2 Years
Crypto News – JPMorgan Chase & Co. is setting ambitious goals for its digital token, JPM Coin, with plans to increase daily transactions by up to tenfold over the next year. Umar Farooq, the bank’s Global Head of Financial Institution Payments, believes that JPM Coin could potentially handle $10 billion in daily transactions within one to two years, a significant jump from its current daily processing of approximately $1 billion.
During an interview at the Singapore FinTech Festival, Farooq expressed confidence in the rapid growth of JPM Coin transactions, stating, “We believe it’s going to start taking off.”
JPM Coin serves as a platform for dollar and euro-denominated payments for wholesale clients via a private blockchain network. While it’s among the few operational blockchain applications offered by a major bank, it still represents a small fraction compared to JPMorgan’s daily processing of $10 trillion in US dollar transactions.
Proponents of blockchain technology argue that it can provide faster and more cost-effective payments compared to existing systems. However, the scalability of digital ledgers has yet to be tested on the same scale as traditional payment networks.
In addition to accelerating its JPM Coin transactions, JPMorgan is leveraging the technology in various applications. The bank’s blockchain-powered payment system, Onyx, is introducing a new feature for JPM Coin – programmable payments. This feature allows clients to automate payments, enabling the system to handle financial obligations such as overdue payments and margin calls.
Naveen Mallela, the Global Head of Coin Systems at Onyx, disclosed that Siemens, a German-based company, recently utilized JPMorgan’s JPM Coin system to establish its account for transfers, addressing potential funding gaps.
JPM Coin now offers clients the capability to program their accounts, incorporating specific conditions to facilitate fund movements for covering overdue payments and margin calls. This introduction of programmability marks a significant milestone in the world of digital currencies and tokenized money, paving the way for dynamic and event-driven infrastructure within the industry. This development is pivotal for achieving real-time, automated, and programmable treasury operations.