Today’s reports revealed that JP Morgan, one of the largest banks in the United States, has completed the first transaction using its native token, JPM Coin. Also, SAP announced using USDC for the cross-border payment pilot test. JP Morgan recently partnered with about six Indian banks.
According to the report, the giant America-based commercial bank, JP Morgan, recently revealed that it just completed the first blockchain transaction for its customer using its unique crypto token, JPM Coin.
Furthermore, the report revealed that a significant German conglomerate, Siemens AG, performed the transaction. In addition, the JPM Coin transaction was the first to be denominated in fiat euros on the bank’s supported blockchain, according to JP Morgan’s spokesperson.
Additionally, the blockchain network authorized by the bank was reportedly a decentralized private ledger that was not open to the public. Hence, this makes the JPM Coin exclusively available to the institutional customers of JP Morgan. And they can only use it to pay their bills on the bank’s platform.
More so, reports revealed that banks and other financial firms in the TradFi (Traditional Financial) sector are seeking ways to adopt the fast-rising blockchain technology into their businesses. They reportedly believed that blockchain-back payment transactions are always faster, more secure, and cheaper.
Notably, in 2019, JP Morgan launched its Coin Services branch that allows clients to make transactions 24/7, leveraging blockchain technology rather than local wire transactions. For four years, the bank has made transactions on the ledger accessible at any time, against the business hours limit initially placed on it.
In addition, JPM Coin boasts of a $300 billion trade volume and also claims to process numerous payment transactions with a daily accumulation of about 9.8 trillion.
SAP To Use USDC Stablecoin
Meanwhile, the giant bank was not the only institutional client to embrace crypto payment platforms. According to a report, a German software firm, SAP, recently announced that its developers are running a cross-border payment test using the US Dollar Coin.
SAP, the most prominent software firm by liquidity, stated that the new protocol would help to facilitate and speed up small transaction processing for enterprise planning to send money offshore.
Remember that the USDC is a stablecoin issued by Circle network and pegged at the same value as the United States dollar. SAP also revealed that its clients can now participate in the testing of the new project by requesting the dummy USDC which the firm would provide.
Also, the company stated that the exercise would be executed on a blockchain platform different from the Ethereum network. Also, the highest transaction that involves real ERC coins is below $20.
Currently, many crypto startups are now dependent on the fast-rising blockchain technology to execute transaction payments in a faster, more efficient, and cheaper way than the traditional crypto payment process. Initially, before the Signature Bank collapsed, it facilitated the swapping of crypto to fiat currency, leveraging the Signet protocol.
JP Morgan Partnered With 6 Indian Banks
According to reports, JP Morgan revealed its plan to create a platform to promote the interbank payment of dollar transactions backed by blockchain technology. To fulfill its goal, the bank added that it has partnered with six prominent banks in India.
The partners included Yes Bank, GIFT City ( Gujarat International Finance Tec-City, JP Morgan’s banking unit), ICICI Bank, Indusind Bank, Axis Bank, and HDFC Bank.
They aim to build a blockchain project to improve and enhance the existing payment system to execute transactions faster and cheaper. With blockchain features, local banks can instantly process transactions.
Furthermore, the new scheme would help to project GIFT City as a global crypto trading center next to Dubai and Singapore, according to the report.
In addition, JP Morgan launched Onyx, a blockchain platform in 2020, to promote the quality of settlement transactions along wholesale investors. Onyx reportedly processed about $700 billion in transactions in April this year.