JPMorgan is now the first bank in the U.S. to create and test its own cryptocurrency. This move could be a catalyst for other large institutions.
Tagged as the JPM Coin, the bank’s cryptocurrency is based in U.S. dollars. The bank said it plans to expand to other currencies once the prototype has been thoroughly tested, but the coin is specifically for business-to-business transactions. Individual JPMorgan clients won’t be able to use the cryptocurrency until decisions are made after the testing phase.
As a heavy critic of Bitcoin, JPMorgan said its cryptocurrency is more regulated.
“We are supportive of cryptocurrencies as long as they are properly controlled and regulated,” Umar Farooq, head of Digital Treasury Services and Blockchain at JPMorgan, said. “As a globally regulated bank, we believe we have a unique opportunity to develop the capability in a responsible way with the oversight of our regulators.”
JPM Coin will be issued to institutional clients on the Quorum Blockchain until the bank expands to other platforms; however; the coin can be operated on any standard blockchain network.