JPMorgan Says Its Cryptocurrency 'JPM Coin' Is Now Live
JPMorgan Chase & Co's (NYSE: JPM) cryptocurrency "JPM Coin" is now live for commercial use, Takis Georgakopoulos, the bank’s global head of wholesale payments told CNBC.
What Happened: The New York-based bank’s digital currency was used this week to send international payments commercially for the first time ever by a large technology client, Georgakopoulos said.
The JPMorgan executive didn't name the large international technology company but said other clients are also coming on board.
The Jamie Dimon-led bank is also creating a new business unit, Onyx, with more than 100 staff members to deal with blockchain and digital currency. Umar Farooq has reportedly been named the new CEO Of Onyx.
Why It Matters: JPMorgan is one of the largest participants in cross-border payments and moves more than $6 trillion a day across 100 countries, noted CNBC.
Georgakopoulos said that the lender is focused on easing wholesale payments, which could save hundreds of millions of dollars if a better solution was deployed.
Onyx will also focus on using the blockchain to process paper checks, which can save up to 75% of the total costs involved, Farooq told CNBC — adding that the project is still months away from commercial launch.
This month, Paypal Holdings Inc (NASDAQ: PYPL) said it would allow its users to buy, sell and hold cryptocurrencies including Bitcoin and Ethereum, spurring a flurry of activity in cryptocurrency markets.
Price Action: JPMorgan shares closed nearly 1.9% lower at $99.33 on Tuesday and fell 0.33% in the after-hours session.
Related Link: 'Caged Bull' Bitcoin Crosses The K 'Breakout' Mark
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