JP Morgan to launch first U.S. bank-backed cryptocurrency
It's called the JPM coin.
NEW YORK CITY — JP Morgan is creating its own cryptocurrency, and is becoming the first major U.S. bank to do so.
According to CNBC, the nation's largest bank, JP Morgan Chase, announced on Thursday that it would be launching its own cryptocurrency called the JPM coin, which has a fixed value redeemable for $1.
The coin is designed to be used by big institutional customers such as corporations, banks, and broker-dealers rather than individuals.
According to the bank's head of blockchain projects, the digital token is meant to speed up international payments, which traditionally take a day or more to settle via wire transfer. It can also be used for securities transactions and treasury services.
When clients want to move dollars on the bank's Quorum blockchain system, money in their accounts is converted to JPM coins.
According to Fox Business, 'the tokens are transferred and instantaneously redeemed' for the equivalent amount of dollars.
The New York Times reports that JP Morgan hopes to increase the coin's versatility, perhaps expanding in the future to represent currencies other than the dollar.
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