- JP Morgan designed a blockchain called ‘Onyx’ and a JPM coin which will be worth one US dollar or fiat currency.
- The currency is being utilized by a global tech company for international payments, marking the premiere of its commercial use and Onyx now has 100 staff.
- The cryptocurrency was launched in February 2019 with the hope of settling transactions more efficiently and making cryptocurrency mainstream.
JPM coin enters the crypto space
JP Morgan designed a blockchain called ‘Onyx’ and a ‘JPM coin’ and each unique piece is worth one US dollar of fiat currency. The JPM coin is already being used by a global tech company for international transactions, marking its first commercial use and Onyx now has 100 staff.
The currency launched in February 2019 with the hope of settling payments efficiently. Umar Farooq, once JPM head is now CEO of Onyx.
Takis Georgakopoulos, JP Morgan’s global head of wholesale payments said that he believes the move and the developments they are making will prove profitable for the company.
Cryptocurrency firms are counting on JP Morgan to move their industry mainstream. Paypal’s announcement last week to accept cryptocurrency holdings and payments resulted in a positive spike for digital currencies.
Blockchain is not always worth it with capital funding falling by 35% in the last year as described by CB insights. JP Morgan plans to save the financial industry millions and monitoring cross border payments can save money.
The Interbank Information bank which was rebranded to Liink by JP Morgan will allow 400 banks to verify payments before they have been sent and prevent rejections. In a few months, Mr. Georgakopoulos said they hope to utilize Blockchain to process checks digitally and save 75% of the total cost the industry is paying currently.
The current demand in China and Singapore for a successful cryptocurrency model is empowering JP Morgan. The bank is leading the race with plans to establish ways for central banks to handle fees.