US banking giant JPMorgan Chase’s stable coin will finally be used for international payments by a major tech firm. JPMorgan hopes that more clients will sign up to use the new JPM Coin.
After years of its initial announcement, JPMorgan said the JPM Coin would be used for the first time this week. As stated by the company, a reputable tech firm would be employing its digital assets in global transactions. This was revealed by the global head of wholesale payments of the bank, Takis Georgakopoulos.
In a CNBC report, the new development, coupled with the growth in the blockchain market, has pushed JPMorgan to create a new business called Onyx. Last week. PayPal announced that users would be able to make crypto payments on its platform starting from 2021. In reaction to the news, digital currencies rallied.
The increasing adoption of digital assets has added to JPMorgan’s confidence in blockchain technology.
In an interview, Georgakopoulos said:
“We are launching Onyx because we believe we are shifting to a period of commercialization of those technologies, moving from research and development to something that can become a real business.”
In addition, JPMorgan’s confidence in blockchain technology is boosted by central banks’ ongoing efforts to create digital currencies. Georgakopoulos said that there is a very high chance for the adoption of CBDC.
The newly appointed CEO of Onyx, Umar Farooq, said that blockchains could help to save 75% of the total cost currently being used to send and process checks.