The ideas about this asset, which could be more functional than the current JPM Coin of the bank, are still in the early stages.
JP Morgan is reportedly considering creating a new blockchain-based digital payment token, according to Bloomberg news on September 7th.
This new token can be used for faster international payments and settlements. Currently, JP Morgan is said to have set up the infrastructure to carry out token transactions, this information comes from anonymous sources knowledgeable about the subject.
JP Morgan has not yet initiated the token creation process because it requires approval from U.S. regulators – they haven’t started this process. Based on statements taken from a JP Morgan spokesperson, Bloomberg stated that the bank appreciates the “careful and thorough” approach of the regulators to the approval process.
Nevertheless, JP Morgan could introduce the token and offer it to customers within a year of obtaining approval from the regulators.
Similar to JPM Coin but Different
The planned token appears to be similar to the company’s existing JPM Coin in some ways. According to the news, the upcoming deposit tokens represent customer deposits and move on the blockchain. According to JP Morgan’s website, the JPM Coin represents dollars held in deposit, and these coins circulate on what the company calls its distributed ledger.
Like the JPM Coin, the new token will also be limited to bank use, not for retail use. It will also be based on Know Your Customer (KYC) and compliance systems.
