JPMorgan has launched its new business division focused on blockchain projects
JPMorgan has launched Onyx, a new business division for its blockchain projects, after its digital token was adopted for commercial use.
The move by JPMorgan could boost the broader blockchain and cryptocurrency industries, whose proponents believe mainstream adoption is nearing.
J.P. Morgan is the first US bank to create and successfully test a digital coin — JPM Coin, backed by fiat currency. With the introduction of its own digital currency, the bank expects to save 75% of its cash settlement costs.
The first user of JPM Coin is a large technology company. In connection with new research in the field of blockchain and digital currencies, JPMorgan has created a new division called Onyx, which engages over 100 employees. According to Onyx CEO Umar Faruk, JPM Coin is not money per se — it is a digital currency representing US dollars, which are stored in certain accounts at JPMorgan Chase N.A.
When one customer sends money to another via a blockchain, JPM Coin is transferred and instantly redeemed for the equivalent amount in US dollars, shortening the settlement time. JPMorgan also intends to create specialised payment channels for central banks interested in developing their own digital currencies.
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