Just months after CEO Jamie Dimon warned that bitcoin, the world’s largest cryptocurrency by market capitalization, was a «fraud,» JPMorgan Chase & Co.
(JPM) is launching a crypto strategy.
The Wall Street bank has asked London-based Oliver Harris, a 29-year-old tech star, to explore the potential of digital money at its corporate and investment bank. (See also: JPMorgan CEO Dimon Regrets Calling Bitcoin a Fraud.)
Harris, who has been leading the bank’s in-house fintech program for the past two years, will be tasked with identifying crypto projects for JPMorgan to develop. He will report to Umar Farooq, the head of blockchain initiatives at the bank and will also oversee the development of the firm’s internal blockchain platform called Quorum, which has been rumored to be preparing for a spinoff.
The first cryptocurrency created by a major U.S.
bank is here — and it’s from J.P.
The lender moves more than $6 trillion around the world every day for corporations in its massive wholesale payments business. In trials set to start in a few months, a tiny fraction of that will happen over something called «JPM Coin,» the digital token created by engineers at the New York-based bank to instantly settle payments between clients.
J.P. Morgan is preparing for a future in which parts of the essential underpinning of global capitalism, from cross-border payments to corporate debt issuance, move to the blockchain. That’s the database technology made famous by its first application, bitcoin.
Jamie Dimon, chairman and chief executive officer of JPMorgan Chase & Co., speaks during an Economic…
[+] Club of New York (ECNY) event in New York.
Photo Credit: Peter Foley/Bloomberg
JPMorgan announced plans to launch JPM Coin on Thursday and expressed love for digital tokens on Valentine’s Day, despite Jamie Dimon having slammed bitcoin as a fraud in the past.
JPM Coin, the first cryptocurrency created by a major U.S.
bank, will be used to settle payments between clients and the lender will then work to transfer cross-border payments or corporate debt issuance services on to the blockchain — which could make a significant impact on the financial technology, or fintech, industry.
According to CNBC, JPMorgan needed to transfer money at the speed at which smart contracts close rather than relying on old technology like wire transfers.
JPMorgan Chase has thrown its hat into the cryptocurrency ring, proposing to launch its own digital coin, as spotted by CNBC. It’s one of the few banks to consider launching cryptocurrency, and the initiative may be surprising given that CEO Jamie Dimon has said he doesn’t “really give a shit” about bitcoin.
On February 14, 2019, Wall Street bank J.P.
Morgan announced the launch of a blockchain-powered digital currency called JPM Coin, which is pegged to the US dollar.
In a press release, Umar Farooq, Head of Digital Treasury Services and Blockchain at J.P. Morgan, defined the JPM coin as “a digital coin designed to make instantaneous payments using blockchain technology.”
Through the use of blockchain technology, the JPM Coin is designed to enable the fast transfer of value between parties that hold accounts in the bank.