JPMorgan
Chase, one of the largest banks in the United States, is in the early stages of
exploring the use of blockchain technology to create a digital deposit token.
The token would represent a digital version of deposits that customers hold in
their bank accounts and could be used to make cross-border payments and
settlements faster and more efficient.
JPMorgan
has already developed most of the necessary technology to make this project a
reality. However, it will only proceed if it receives approval from U.S.
regulators.
According
to an anonymous source, JPMorgan Chase is considering launching a blockchain-based digital deposit token for use by corporate clients within a
year if it receives regulatory approval. The source preferred to remain
anonymous because the matter is considered private and sensitive. This suggests
that JPMorgan is actively pursuing the development of the digital token and is
prepared to move forward relatively quickly once it receives the necessary
regulatory green light.
Expediting
Cross-Border Transactions with Blockchain
The
digital deposit token would function differently from JPM Coin, which the bank
has been using for several years for internal purposes. Instead, it could be
used to send money to clients of other banks and settle trades involving
tokenized securities.
Transactions
using the token would be processed on a blockchain, making settlement
