Proactive Investors - JPMorgan Chase & Co (NYSE:JPM) has enhanced its blockchain-based settlement token, JPM Coin, with new programmable payment features which allow for the automatic execution of payments under specific conditions, such as margin calls and overdue payments.
The introduction of these features marks a major step in the bank's ongoing efforts to innovate in the digital payments space.
JPM Coin, primarily used for wholesale transactions, now processes over $1 billion in transactions daily.
This digital token, one of the first of its kind from a major bank, facilitates dollar and euro-denominated payments through a private blockchain network.
JPM Coin's daily transaction volume is still a small portion of the $10 trillion in US dollar transactions the bank handles daily, but it represents a shift in the institutional adoption of blockchain-based technology.
The bank's global head of payments Takis Georgakopoulos noted on Bloomberg TV that the bank is not only transacting in US dollars but also plans to broaden the currency spectrum of JPM Coin.
Additionally, JPMorgan is exploring other blockchain applications, including a blockchain-based repo application and a digital deposit token aimed at accelerating cross-border settlements.
Georgakopoulos also mentioned the potential development of a more consumer-focused version of these digital tokens, aiming to bring similar efficiencies to retail customers.
Despite these advancements in blockchain technology, JPMorgan boss Jamie Dimon remains a staunch sceptic of the cryptocurrency space, which is the most widely used function of blockchain technology.
He has previously referred to cryptocurrencies as a "hyped-up fraud," indicating a clear distinction between the bank's approach to blockchain technology for specific financial applications and the volatile nature of the broader cryptocurrency market.