This American investment bank has been committed to the development of a private blockchain based on Ethereum for several years. However, with the takeover of ConsenSys in 2020, Quorum changed hands.
However, this transaction does not mean that JPMorgan’s investment in the blockchain has ended. Now it has a new unit that specializes in this technology: Onyx. The scope includes blockchain technology and services for financial markets. The subsidiary is primarily responsible for Liink, the former JPMorgan interbank information network.
JPMorgan Sees Blockchain as Another Source of Income
“Onyx is at the forefront of a major change in the financial services industry. This new business unit reflects JP Morgan’s commitment to innovation, we continue to develop cutting-edge technology that enables a better, faster and more inclusive financial system ”says bank CEO Jamie Dimon.
Umar Farooq is entrusted with the management of Onyx. The latter led the bank’s blockchain project, particularly the development around quorum. He will be responsible for making the blockchain a real source of income for JPMorgan.
So far, Liink is undoubtedly the bank’s main product. The company says users of its platform will have two new applications going forward: “Confirmation” and “Format”.
The Availability of JPM Coin Stablecoin
“Confirmation allows you to verify your account information before making a payment to reduce operational costs associated with incorrect money orders. This can help reduce fraud.” The format is used to review payment instructions to ensure that the payment message complies with major countries and specific currencies information requirements. A senior CNBC manager explained.
These aren’t the only major announcements from JPMorgan, however. Their own cryptocurrency JPM Coin is now available in stores. The bank has also named a large tech company that is already using tokens for international payments. However, its identity remains a mystery.
The creation of JPM Coin can be traced back to February 2019. The bank then relied on their use in cross-border payments. Cryptocurrencies need to enable faster processing at lower costs. Each JPM coin token can be exchanged for a US dollar or other legal currency.
Stablecoin was welcomed by Ripple in 2019, and JPM Coin is a competitor to XRP in international transfers. Its CEO, Brad Garlinghouse (Brad Garlinghouse) believes the token has no interest and large banking institutions will not adopt it.