JP Morgan considering Trial Period with JPM Coin
JP Morgan Chase, one of the largest financial institutions in the United States, has revealed that they’re considering a trial period with the JPM Coin. The trial period will be exclusive to Corporate Clients only, as reported by the Japan Subsidiary of Bloomberg.
The report was analyzed by Bloomberg Japan, where a noticeable interest from clients in the United States and Eurasia was detailed. The remarkable interest pertains to the JPM Coin, where would allow for clients in these continents to speed up their bond transactions.
The Head of Digital Treasury & Blockchain Services in JP Morgan, Umar Farooq commented on the potential trial period by saying: “We believe that a lot of securities over time, in five to 20 years, will increasingly become digital or get tokenized. The technology is outstanding, but it takes time in terms of licensing and approval. It must be explained.”
According to Umar, there are many hurdles that JP Morgan will have to overcome to have their blockchain services approved and licensed worldwide.
Blockchain in a centralized environment
JP Morgan revealed their digital cryptocurrency in February 2019. Their new blockchain service aims to settle transactions between corporate clients are a faster rate of efficiency. The JPM Coin will work as a fiat, allowing for limited value fluctuations. However, the JPM Coin cannot be traded in secondary markets and doesn’t work correctly with the JP Morgan Ecosystem.
The JP Morgan Crypto Coin isn’t the only significant investment that the financial institution has made. They’ve also created a decentralized network for corporate clients, called Quorum. This new network is similar to Ethereum, with the primary goal being to gain a stronger foothold in the interbank market.
JP Morgan has also partnered with Microsoft for assistance with the technical difficulties and hurdles that their crypto coins will have to overcome. The backing of Microsoft will also assist JP Morgan in the approval process. All blockchain services maintained by the financial firm must be regulated and approved before the trial period can begin.