- The US-based bank may start testing its coin for bonds settlements towards the end of the year.
- The JPMorgan Chase believes that we are moving towards tokenized securities market.
The JPMorgan Chase & Co customers from the U.S., Europe and Japan are interested in trying JPM Coin for instant delivery of securities to the exchange.
According to Umar Farooq, head of digital treasury services and blockchain at JPMorgan Chase, the coin would allow for instant delivery of bonds on a blockchain platform
“We believe that a lot of securities over time, in five to 20 years, will increasingly become digital or get tokenized,” he said in a recent interview.
Meanwhile, some global stock exchanges around the globe have been using blockchain technologies to speed up trading settlement. Thus, no wonder that JPMorgan Chase & Co wants to get the share of its lucrative market.
Moreover, a crypto rush seems to be gaining traction as the market has recovered from the crypto winter and many large corporations from financial and tech sectors are joining the game.
In February, JPMorgan Chase & Co unveiled the plans to launch the proprietary stablecoin pegged to the U.S. dollar. The coin is supposed to be used on a private blockchain to facilitate the cross-border transactions between the bank’s customers.
According to Farooq, with JPM Coin, bond traders will be able to deliver the securities instantly, provided that the buyer has purchased JPM Coins in advance and put the in their JPMorgan deposit account. Also, the seller’s bonds should be tokeinized. In this case, the algorithms on a blockchain platform will complete the transaction in no time.
JPMorgan may test the coin with a few customers towards the end of the year.
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