In the era of the digital revolution, JP Morgan, the American banking giant, is making huge strides in digital finance, processing transactions worth $1 billion daily using its own token – JPM Coin. This development underscores the speed with which the financial sector is moving towards blockchain technology.
JP Morgan is not only tracking technological advancements but is actively participating in shaping the future of finance. Due to the success of JPM Coin, it is considered one of the traditional banking institutions that are actively driving this digital transformation. By leveraging blockchain technology, the bank improves efficiency and security, reduces costs, and attracts more customers.
JPM Coin, introduced in 2019, primarily facilitated dollar payments between institutional accounts worldwide, enabling smoother and immediate settlement processes. In June of this year, expanding its features, the token began supporting transactions in euros.
While currently JPM Coin is primarily used for transactions in US dollars, the future of this digital coin seems promising, with its application extending beyond its current scope. Such advancements testify to the growing trust of the financial sector in blockchain technology and digital assets.
However, this isn’t the only example of how traditional financial institutions are utilizing blockchain technology. BlackRock, a global leader in asset management, is deepening its interest in cryptocurrencies in collaboration with JP Morgan. Through JP Morgan’s blockchain platform – Onyx, BlackRock successfully conducted a derivatives market transaction backed by tokenized shares of one of its funds.
Although the trading volume on Onyx is small compared to JP Morgan’s traditional platforms, this transaction represents a significant step for BlackRock in the crypto space. The ultimate idea? Using blockchain technology to optimize capital and increase efficiency in the financial sector.
In times when the cryptocurrency market reaches a capitalization of $1.2 trillion, traditional banking institutions like JP Morgan and BlackRock are boldly stepping into the world of digital finance, indicating a promising future for blockchain technology in the sector.
Photo by Precious Madubuike on Unsplash
