Banking giant JPMorgan Chase & Co. is reportedly investigating a blockchain-based digital payment and settlement system, as per Bloomberg News.
JPMorgan has developed most of the infrastructure for the project, which necessitates a digital deposit token. However, the firm cannot proceed with the system until it receives approval from U.S. regulators, according to an insider cited by Bloomberg. Once approval is granted, the company could potentially launch the project for corporate clients within a year.
The proposed digital token payment and settlement system has the potential to accelerate transaction speeds and reduce costs. The deposit token represents a digital version of a customer’s deposits and could be utilized to send funds to users of different banks or settle tokenized securities.
JPMorgan’s Past Blockchain Ventures
- The U.S. bank previously collaborated with the Monetary Authority of Singapore to test a deposit token payment system last year.
- Umar Farooq, CEO of JPMorgan’s web3 arm Onyx, stated in a 2022 announcement, “JPMorgan continues to develop blockchain-based solutions for financial services and sees deposits accessible on the public blockchain as the next step in the evolution of digitized commercial bank money.”
- Additionally, the firm had introduced its own cryptocurrency called “JPMorgan Coin” in 2019.
- More information about this innovative system will be available upon official approval from the relevant authorities.