JPMorgan To Use A Blockchain-Based Deposit Token For Payments
JPMorgan is in the early stages of creating a blockchain-based deposit token to ease cross-border payments.
JPMorgan, the largest US bank, continues to dive deeper into the crypto space, exploring the creation of a blockchain-based infrastructure for international payments. The bank will launch a new product as soon as it receives approval from regulators.
JUST IN: JPMorgan Chase is developing a blockchain-based digital deposit token to speed up cross-border payments.
— Watcher.Guru (@WatcherGuru) September 7, 2023
The financial giant has so far developed most of the platform, which will initially be available to corporate clients. The new blockchain-based product will be used to represent a deposit position. It will differ from the existing JPM Coin, which also allows corporate clients to transfer funds through a financial institution.
The deposit token as well as JPM Coin requires compliance requirements such as KYC. Last year, the bank tested the deposit token in a settlement with the Monetary Authority of Singapore under Project Guardian.
JPMorgan noted the convenience of the blockchain-based deposit token and hoped that the regulator would approve the new product as soon as possible. According to the bank, deposit tokens can provide greater stability over the stablecoins.
