JPMorgan: Digital deposit token can be used for cross-border payments
JPMorgan: Digital deposit token can be used for cross-border payments
JPMorgan is considering using a blockchain-based digital deposit token for cross-border payments and settlements. If recognized by regulators, the digital token could be available in other fiat currencies.
JPMorgan Chase & Co. is exploring the prospects for such an application of the digital token to accelerate cross-border payments and simplify settlement. The blockchain-based deposit token will be digital coins that serve as a deposit claim against a commercial bank.
Initially, the deposit token will be denominated in U.S. dollars, but it may later be made available in the currencies of other countries after approval from regulators, Coincu reported.
JPMorgan conducted a pilot launch of the digital token last year. It happened during a transaction under the Guardian project of the Monetary Authority of Singapore. Recent research has shown the high potential of the digital form of money, and as a result, the bank is confident that deposit tokens will become widespread in the digital asset ecosystem.
The deposit token will be used differently from JPM Coin, which helps JPMorgan's corporate clients transfer dollar and euro assets between their accounts within the bank.
According to the bank, JPM Coin has been involved in processing $300 billion worth of transactions since its launch. Meanwhile, JPMorgan moves $10 trillion in all transactions every day.
After regulatory approval, JPMorgan is ready to launch a digital deposit token for corporate clients in less than a year. The move is in line with JPMorgan's core goals of expanding the use of blockchain to simplify cumbersome processes in the banking industry.
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