Crypto News– JPMorgan Chase, the renowned American multinational bank, is reportedly in the early stages of exploring the development of a blockchain-based digital deposit token. An individual familiar with the project’s progress has disclosed that JPMorgan won’t proceed with creating the token unless it gains approval from US regulators.
JPMorgan Explores Digital Deposit Tokens
As of 2023, JPMorgan stands as the world’s largest bank by market capitalization. The proposed digital deposit token is envisioned to streamline cross-border payments and settlements. Bloomberg reports that much of the required infrastructure for implementing this innovative payment method has already been developed.
The individual who shared this confidential information with Bloomberg opted to remain anonymous due to the sensitive nature of the matter. Furthermore, they mentioned that once regulatory approval is secured, the bank may introduce this product for corporate clients in less than a year.
In response to these developments, a JPMorgan spokesperson conveyed the bank’s appreciation for the thorough and diligent approach of regulators in assessing any new product. The spokesperson also emphasized that, if the project gains regulatory approval, the bank’s blockchain infrastructure is prepared to swiftly support the launch of deposit tokens.
The spokesperson highlighted that the issuance of deposit tokens underwent testing in a single transaction as part of the Monetary Authority of Singapore’s Project Guardian last year. Project Guardian is a collaborative initiative aimed at facilitating secure borrowing and lending activities on a public blockchain-based network. Umar Farooq, CEO of JPMorgan’s blockchain-based platform for wholesale payment transactions called Onyx, expressed enthusiasm about the bank’s collaboration with MAS and the prospect of introducing tokenized deposits on a public blockchain.
JPMorgan has a history of leveraging blockchain technology in various projects, with one of its recent endeavors being JPM Coin, which was announced in 2019. JPM Coin is a stablecoin primarily used for business-to-business money transfers and operates on a private blockchain. Notably, the coin is not available on digital asset exchanges and is limited to a select group of institutional clients.