Since the June update, the trading volume of JPM Coin has seen a significant increase, demonstrating the potential for development and market coverage of JPMorgan’s cryptocurrency.
Recently, Akis Georgakopoulos, Global Head of Payments at JPMorgan, revealed that the banking giant is currently processing approximately $1 billion worth of JPM Coin transactions daily. With this milestone, Akis Georgakopoulos stated that there is still room for expanding the coverage of JPM Coin, as the current payment system has several key inefficiencies:
- Payment speed, especially for cross-border transactions.
- Separation of money and information, making it difficult to track or reconcile transactions.
- Flexibility of money.
Currently, JPMorgan is working to address these three issues with its digital assets. Although the $1 billion figure represents only a small fraction of the $10 trillion in payments processed by JPMorgan daily through its traditional platforms, it is still a significant volume, demonstrating that JPM Coin has gained substantial traction in recent months.
Previously, in June, JPMorgan reported that JPM Coin had processed over $300 billion in transactions since its launch in 2020. With the current daily transaction rate of $1 billion, the bank is on track to surpass that amount within the coming year.
JPM Coin is a payment token that allows corporate customers to make USD payments via blockchain globally. It operates 24/7, enabling faster transaction processing, allowing customers to make payments just before the due date, and improving liquidity management. In June, the banking giant also integrated additional payment methods in Euro.
This is a rare example of a major bank using blockchain technology. Furthermore, JPMorgan is also developing a new blockchain-based digital currency to accelerate transaction speed and optimize transaction fees for customers. Unlike JPM Coin, the new token operates similarly to stablecoins and CBDCs and is intended for sending money to banks outside the system or for use in cryptocurrency securities.