JPMorgan's stablecoin JPM Coin is about to launch, with reports indicating that a large multinational corporation will use it for commercial transactions this week.

After nearly a year and a half of development, the blockchain division "Onyx" of the U.S. banking giant JPMorgan Chase has officially been established. Its cryptocurrency "JPM Coin" is also ready for commercial use, with claims that a large technology firm will begin using JPM Coin for global payments starting this week.

Blockchain Division Onyx

JPMorgan's global head of payments, Takis Georgakopoulos, told CNBC that their new division, Onyx, has over 100 employees dedicated to blockchain development and cryptocurrency business. A large international technology company is already using JPM Coin for commercial purposes, conducting cross-border payments with JPM Coin around the clock, although the company's name was not disclosed. Georgakopoulos stated:

The reason we launched Onyx is that we believe we are at a point in time where this technology is being commercialized. We are solving pain points in the payments industry, and the solutions we are introducing could save hundreds of millions of dollars.

JPM's blockchain lead, Christine Moy, also confirmed the CNBC report on Twitter. Interestingly, since JPMorgan began trials in 2017, the blockchain team has been known as the Interbank Information Network and is now rebranded as "Liink," a name similar to the Chainlink oracle project (LINK).

"JPM Coin"

JPM Coin was launched in February 2019, similar to a stablecoin, with each JPM Coin pegged to one U.S. dollar and exchangeable for other fiat currencies. It is a digital currency based on blockchain technology that enables instant transfers, payments between institutional accounts, or bond transactions, initially intended for international payment settlements for large enterprises.

It is understood that JPMorgan transfers over $6 trillion in assets daily across more than 100 countries, making it one of the largest participants in global cross-border payment services. However, the current reliance on a complex global network of correspondent banks can sometimes lead to payment rejections due to incorrect account information or other issues.

In fact, JPMorgan's biggest news this year was the exposure in September of confidential documents related to assisting in the transfer of illicit funds. On September 29, they paid a hefty $920 million fine to settle charges of manipulating the U.S. precious metals and Treasury markets. In 2017, JPMorgan CEO Jamie Dimon famously criticized Bitcoin but has now embraced blockchain technology.

JPMorgan executives believe that blockchain has moved beyond the hype phase and is beginning to generate real solutions. Umar Farooq, formerly in charge of JPMorgan's blockchain projects and now CEO of Onyx, stated:

When it comes to blockchain, if it's not in the disillusionment phase, it's beyond the hype, which is why JPMorgan has been relatively quiet about it until we are ready to scale and commercialize it.