JP Morgan Chase has made an important update to its payment system, allowing clients to utilize its blockchain-based platform for European Union (EU) payments. According to a report from Bloomberg on June 23, JP Morgan initiated the offering of JPM Coin, its digital currency, for transactions denominated in euros on June 21.
The initial payment using JPM Coin was conducted by Siemens AG, a leading German multinational conglomerate. Bloomberg confirmed this transaction with both JP Morgan and Siemens AG, but neither company disclosed the transaction’s size.
One of the key advantages of JPM Coin, as noted by Bloomberg, is its ability to facilitate transfers 24/7 due to its blockchain-based nature. Basak Toprak, JPMorgan’s head of Coin Systems for Europe and MENA, emphasized the benefits of rapid transfers, allowing companies to make payments closer to their due dates. This efficient process enables corporate treasurers to manage liquidity more effectively, capitalize on cost advantages, and earn higher interest income on deposits.
While JPM Coin has been available to institutional clients since 2019, its recent adoption for euro transactions marks a significant milestone. Since its introduction, JPM Coin has processed an impressive $300 billion in payments, as reported by Bloomberg. However, this figure represents only a fraction of JP Morgan’s massive $10 trillion daily payment volume. In addition to its euro payment system, JP Morgan has been actively pursuing other blockchain initiatives. In June 2023, the company announced a pilot program for interbank blockchain settlements in India. Furthermore, in November 2022, JP Morgan executed a public blockchain transaction in Singapore. The company also offers its suite of blockchain tools called Onyx, and it previously owned and developed the enterprise Ethereum platform Quorum before selling it to ConsenSys in 2020.