Today JP Morgan told
Bloomberg that the company plans to start piloting its JPM Coin later in the year, subject to regulatory approval.
As
previously reported, the primary purpose of the coin is to enable instant settlement for blockchain transactions. “We believe that a lot of securities over time, in five to 20 years, will increasingly become digital or get tokenized,” Umar Farooq, JP Morgan’s head of digital treasury services and blockchain told Bloomberg.
Hence the coin will enable institutional clients to exchange tokens for coins in Delivery versus Payment transactions. Thereby any counterparty risk is transferred to JP Morgan. Bonds is one area that JP Morgan has previously run several blockchain pilots using its Quorum blockchain protocol.
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