JPMorgan is gearing up to significantly increase daily transactions handled by its digital token JPM Coin, aiming to process as much as $10 billion in daily transactions within the next year or two.
“We really think it’s going to start taking off,” stated Umar Farooq, JPMorgan’s Global Head of Financial Institution Payments, in an interview with Bloomberg Television.
JPM Coin, a stablecoin pegged to the US dollar, enables wholesale clients to make seamless dollar and euro-denominated payments through a private blockchain network. Its current daily transaction volume stands at around $1 billion.
Farooq further noted that he anticipates a five to ten times increase in transaction volume over the next few years. With this ambitious target, JPM Coin could potentially revolutionize the way large institutions conduct cross-border payments.
JPMorgan Chase is among the few major banks actively exploring blockchain technology for real-world applications. Proponents of blockchain argue that it has the potential to revolutionize payments by enabling instantaneous transactions at a lower cost compared to traditional methods.
However, despite blockchain’s promise, large-scale implementation remains a challenge. Existing payment networks, built over decades of development, are well-established and handle far greater transaction volumes than any blockchain-based solution.
JPMorgan’s plans to expand JPM Coin usage could serve as a significant test case for blockchain technology in the realm of large-scale financial transactions. If successful, it could pave the way for wider adoption of blockchain-based payment solutions.