The American bank JP Morgan Chase will test its own token JPM Coin. Business customers of the company are given the opportunity to carry out part of the mutual transactions via the token.
It is the first use in practice of cryptocurrency by a large American bank, claims CNBC. The JPM Coin is a so-called stablecoin: in order to prevent negative volatile and speculative effects, the value is linked to the dollar. A JPM Coin represents the value of a single dollar. JP Morgan business customers can exchange dollars for the coins, making quick payments through JP Morgan, after which the bank will pay the value back in dollars and destroy the tokens.
The tests start in a few months. The bank then leaves a fraction of its daily payment volume via the token. Every day JP Morgan would move around six billion dollars worldwide. Only international customers approved by the bank are eligible for participation.
The bank used to be late about Bitcoin and blocked, for example, the purchase of Bitcoin by credit card holders. However, JP Morgan previously agreed that blockchains in combination with a controlled digital currency were promising for many applications. The company already held tests with an Ethereum-based platform last year and already joined the Open Ledger Project of The Linux Foundation in 2015.