By Investment banking giant, JPMorgan Chase is ready to begin trials for its “JPM Coin” cryptocurrency in partnership with its corporate clients.
As per a report published by Bloomberg Japan on Tuesday, JPMorgan’s head of digital treasury, Umar Farooq, stated that customers would participate in the trial of the new technology with the core goal of speedier transactions, including payments between firms and bond transactions.
According to Bloomberg, the trials are being conducted on the pretense that regulatory permission will be granted.
The news was first revealed back in February, and JPM Coin will initially operate atop of Quorum, a private version of the Ethereum blockchain which was developed by the bank.
Furthermore, JPM Coin will function as a stablecoin. Customers will be required to deposit fiat assets at the bank in exchange for the token, which thereafter can be transferred via a distributed ledger.
The coin was originally planned to be linked to the U.S dollar but is now expected to be tied to other fiat currencies in the future. Moreover, real-world trials were set to happen within “a few months” as per a report published at the time.
Farooq, on the subject of the development of the coin, told Bloomberg in the report:
“The technology is very good, but it takes time in terms of licensing and approval. It must be explained.”
In addition to inter-firm remittances, Farooq also stated that the stablecoin could be used to settle bonds and commodities transactions. Moreover, European, Japanese and American clients have already expressed interest in the cryptocurrency according to Farooq.
However, Farooq would not divulge any information as to the clients who are set to participate in the forthcoming trials, as per the report from Bloomberg.
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