JPMorgan Chase & Co. announced the expansion of one of the largest projects in the framework of the implementation of digital technologies, including blockchain, in the field of traditional banking.

The largest American banking holding has launched a new financial service for blockchain payments in euros for corporate clients. These transactions will be conducted through the system JPM Coin.

The financial institution launched JPM Coin in 2019. The initial purpose of the operation of this system was designated the implementation of transactions for the transfer of payments in dollars. This week, the service has expanded its functionality by starting to process operations in euros. This information was reported by Basak Toprak, head of JPMorgan’s coin systems department in Europe, the Middle East, and Africa. According to him, the German company Siemens AG has already made the first payment in euros on the platform of the bank holding. Representatives of this firm have not yet commented on the transaction experience.

Many large banks have been studying the most promising ways of using blockchain for almost ten years to increase the level of efficiency of processes that are standard operating practices for financial institutions. Against the background of large-scale research in this direction, there are not very many applications providing for the provision of financial services using advanced technology intended for commercial use.

The large-scale advantages of blockchain so far continue to exist as potentially possible prospects that have not been realized. For this reason, many skeptics have expressed doubts that this technology can solve the problems of the financial sector and improve already established processes.

JPM Coin is a rare example of an actively functioning blockchain application of a large bank. At the same time, this system occupies an insignificant place in the overall structure of the bank holding’s payment business. Since the launch of the blockchain application in 2019, transactions totaling about $300 billion have been processed through it. Against the background of this indicator, the fact that the bank holding processes payments with a total volume of almost $ 10 trillion every day deserve special attention.

JPM Coin allows consumers of wholesale payment services, including, for example, large multinational corporations, to transfer dollars or euros to and from their accounts in this financial institution around the world, as well as to make transfers to other clients of the lender. In this case, blockchain technology is used. Algorithms of traditional payment systems are not applied.

Users can make payments in JPM Coin around the clock. Traditional systems provide for processing transactions only during business hours and at a slower pace.

Toprak suggests that corporate treasurers can use JPM Coin to better manage liquidity. For example, they can initiate payments immediately before their implementation. Toprak stated that timely payment has several advantages. In this case, customers can receive more interest income on deposits.

JPMorgan’s competitors, meanwhile, are also implementing blockchain and digital asset projects. For example, Goldman Sachs Group presented a virtual asset platform in November. The investment company stated that this digital platform can be used to issue securities in such areas as, for example, real estate. Also in 2022, the firm, together with Banco Santander SA and Societe Generale SA, helped the European Investment Bank issue digital bonds through the use of blockchain.

As we have reported earlier, JPMorgan On Track to Deliver $1 Billion in Value Through AI.