Takis Georgakopoulos, the global head of payments at JPMorgan, has revealed that the company processes over $1 billion in daily transactions through its digital asset, JPM Coin.
Speaking during an interview with Bloomberg TV on Oct.26, Georgakopoulos named three major inefficiencies of the current payment systems: the speed of the payments, especially cross-border transactions; the separate movement of money and information, which makes it hard to track or reconcile transactions; and the fungibility of money. JPMorgan is trying to solve these three issues with its digital asset, JPMorgan Coin, Georgakopoulos said, adding:
“Today, we move $1 billion every day through JPM Coin for a number of large companies.“
According to the executive, the next step would be to create a retail version of the asset. While central bank digital currency (CBDC) is one way to do it, there’s also an opportunity for banks to create a digitalized version of deposits using blockchain.
Related: First Abu Dhabi Bank completes cross-border payments testing on JPMorgan Onyx
JPM Coin is a stablecoin pegged to the United States dollar at a 1:1 collateralization ratio. Launched in 2020, its only aim is to serve as a temporary vehicle for real-time gross settlement between JPMorgan’s institutional clients.
In June 2023, JPMorgan reported that more than $300 million was transacted via JPM Coin since its 2020 launch. The new data, reporting daily transactions exceeding $1 billion, is a massive surge in four months. This may be explained by the launch of euro-denominated transactions through the JPM Coin system in June.
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