In an article published by PYMNTS on September 7, 2023, it has been revealed that financial giant JPMorgan Chase is in the advanced stages of developing a blockchain-enabled digital deposit token, set to revolutionize the pace and efficiency of cross-border transactions. This initiative, which is at the forefront of Wall Street’s integration of blockchain technology in the banking sector, is now awaiting the green light from U.S. regulators.
The proposed system is designed to significantly accelerate the transaction time in cross-border payments, offering a transformative approach to the traditional financial operations. According to Bloomberg, cited in the original PYMNTS report, the bank is focusing on creating an infrastructure where money transfers between different banks are facilitated seamlessly, and trades involving tokenized securities issued on a blockchain can be easily settled.
JPMorgan Chase is not new to the world of blockchain innovation, having previously introduced JPM Coin, a blockchain-based system, albeit limited to the transactions between the clients of the bank itself. However, this new deposit token aims to expand upon that, offering more extensive capabilities including interbank transactions and potentially reducing transaction costs through swift settlements.
This initiative is part of the bank’s Onyx digital asset program, which, as noted by PYMNTS citing information from CoinDesk, has already been adopted by prestigious financial institutions such as Goldman Sachs, DBS Bank, and BNP Paribas, with an additional 15 banks and broker-dealers considering joining the program.
Tyrone Labbone, the head of the Onyx program, emphasized the significant potential of tokenization in traditional finance, recognizing it as a “killer app.” Despite the ongoing fluctuations and uncertainties in the cryptocurrency market, JPMorgan maintains its dedication to harnessing the advantages of blockchain technology, especially in facilitating instantaneous payments between institutional accounts, a vision the company first shared back in February 2019.