JP Morgan Chase introduces first US bank cryptocurrency

JP Morgan Chase is the first major US bank to have its own cryptocurrency.

Cryptocurrency Bank JPMorgan Chase Blockchain United States Bitcoin

JP Morgan Chase is creating its own cryptocurrency. The bank is the first large bank in the US to have its own digital payment system.

Why does JP Morgan have its own cryptocurrency?

JP Morgan has introduced its ‘JPM Coin’ that customers can use and is redeemable for one US dollar.The bank insists that the crypto’s value won’t fluctuate like bitcoin. The financial institution explained its move into blockchain technology in a statement.

‘We have always believed in the potential of blockchain technology and we are supportive of cryptocurrencies as long as they are properly controlled and regulated. As a globally regulated bank, we believe we have a unique opportunity to develop the capability in a responsible way with the oversight of our regulators,’ said JP Morgan.

The financial institution wants to move into blockchain to find a faster way to transfer money. Umar Farooq, head of JP Morgan’s blockchain projects, explained why the bank will handle cryptocurrency transactions.

‘So anything that currently exists in the world, as that moves onto the blockchain, this would be the payment leg for that transaction. The applications are frankly quite endless; anything where you have a distributed ledger which involves corporations or institutions can use this,’ said Farooq.

How will JP Morgan cryptocurrency be used?

Farooq noted that the crypto will be used in three ways. The first would be for large corporate customers to cut back on slow-paced wire transfers. The second purpose is for securities. The third method would be for major corporations like Facebook to manage activities like paying employees.

‘Money sloshes back and forth all over the world in a large enterprise. Is there a way to ensure that a subsidiary can represent cash on the balance sheet without having to actually wire it to the unit? That way, they can consolidate their money and probably get better rates for it,’ said Farooq.

JP Morgan Chase hopes that its cryptocurrency will help make it easier for customers to transfer money in a more modern way. One of the oldest US banks is moving into the future of finance with the newest financial technology.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Cryptocurrency trading

Trade CFDs and spread bet on cryptocurrencies with IG.

  • No need to own any cryptocurrency
  • Trade on bitcoin, ether, ripple and litecoin pairs
  • Speculate on markets that are both rising and falling

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.