Field Testing CBDCs: JPM Coin Surpasses $1 Billion in Daily Transaction Volume


Field Testing CBDCs: JPM Coin Surpasses $1 Billion in Daily Transaction Volume

by Discern Reporter

Compared to the amount of money that JPMorgan Chase moves in a day, $1 billion isn’t a lot of money. But as a test case for coming Central Bank Digital Currencies, the JPM Coin’s accelerated performance is a harbinger of things coming sooner rather than later.

It may behoove Americans to start moving their investments into tangible assets. Cash and the money in our bank accounts would be the first victims of this development, especially if there is a rapid shift into the “Digital Dollar” of the near-future.

“Last year, the biggest driving forces for people moving their retirement into physical precious metals were inflation and ‘woke’ ESG funds,” said Jonathan Rose, co-founder of Genesis Gold Group. “Today, it’s de-dollarization and the threat of Central Bank Digital Currencies.”

All four threats mentioned by Rose — inflation, ESG, de-dollarization, and CBDCs — are tied together. This is why massive asset managers like BlackRock and Vanguard are quietly recommending gold to their corporate clients.

As the article below by Discern Report notes, JPMorgan Chase and BlackRock are heading in the same direction and oftentimes using the same technological infrastructure to advance their near-term plans. They and other private financial institutions are racing to earn seats at the table for what they envision as a public-private partnership driving a centralized world currency.

“It’s refreshing to talk to people every day who understand what we’re really facing,” Rose continued. “Unfortunately, I fear the vast majority of Americans will embrace a CBDC once the ‘benefits’ are sold to them by the powers-that-be, only to feel betrayed once reality hits.”

Below is the pertinent news about JPM Coin’s milestone. Those who are interested in protecting their retirement through rollover or transfer retirement accounts backed by physical precious metals can contact Genesis Gold Group.

JPMorgan’s JPM Coin Witnessing Robust Growth, Handling $1 Billion Daily

JPMorgan, the largest investment bank in the U.S., is actively promoting the use of blockchain technology for payments as its digital token, JPM Coin, successfully processes $1 billion worth of transactions daily.

In an interview with Bloomberg Television, Takis Georgakopoulos, the global head of payments at JPMorgan, revealed the updated performance of JPM Coin and expressed the bank’s commitment to expanding its usage.

While predominantly transacted in US dollars, JPM Coin is set to widen its reach with plans for continued expansion, according to Georgakopoulos.

Over the past year, JPMorgan has gradually increased access and use of JPM Coin. In June, the token facilitated around $300 billion in transactions since its launch, although it still falls short of the bank’s daily payment volume of nearly $10 trillion.

JPM Coin’s functionality expanded in June with the introduction of euro-denominated payments for corporate clients. Germany’s Siemens AG made the first euro payment on the platform, enabling wholesale clients to conduct dollar and euro-denominated transactions via a private blockchain network.

As one of the few live blockchain applications by a major bank, JPM Coin offers the advantage of 24/7 operation, removing limitations imposed by traditional transaction hours. This significantly reduces processing time, facilitating quicker execution of client transactions.

In September, insiders revealed that JPMorgan is exploring the creation of a blockchain-based digital deposit token to expedite cross-border payments and settlements. The bank has already developed most of the underlying infrastructure pending final approval from U.S. regulators. Upon receiving approval, JPMorgan anticipates launching the token for corporate clients within a year.

When questioned about the digital deposit token, Georgakopoulos expressed the intention to develop a retail version, extending the efficiency gains to consumers.

JPMorgan also introduced the Tokenized Collateral Network (TCN) in October. This in-house blockchain-based tokenization application allows investors to utilize assets as collateral and transfer collateral ownership without physically moving the underlying assets.

The TCN was utilized by BlackRock to tokenize shares of one of its money market funds, which were then transferred to Barclays as collateral for an over-the-counter derivatives trade between the two institutions.

According to Tyrone Lobban, head of Onyx Digital Assets at JPMorgan, the TCN enables instant collateral transfers. When operating at scale, the technology will enhance efficiency by releasing locked capital for use as collateral in ongoing transactions.

JPMorgan aims to further expand the TCN’s capabilities to accommodate additional assets such as equities and fixed income, allowing institutions on the network to meet various collateral requirements.

Tom McGrath, deputy global chief operating officer of the cash management group at BlackRock, praised the tokenization of money market fund shares as collateral, highlighting its potential to streamline margin calls during market volatility.

By leveraging the Onyx Digital Assets blockchain network, JPMorgan seeks to provide clients with a wide range of assets for collateralization to meet their specific trading requirements.

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