JPMorgan's JPM Coin integrates with Partior for interbank transactions, significantly leading other U.S. companies.

According to a report from foreign media, JPM Coin, the stablecoin issued by asset management firm JPMorgan, can now be used not only on its own blockchain platform Onyx but also on the cross-bank alliance chain Partior. This means that JPM Coin can now complete transactions across banks.

What Is JPM Coin?

J.P. Morgan, a traditional financial institution, boldly innovates in the blockchain business and has introduced many related services and products, with JPM Coin being its current main focus in the industry.

JPM Coin

J.P. Morgan launched its own stablecoin, JPM Coin, in 2019 and operates it on the concurrently introduced Onyx blockchain platform for settling its banking transactions. As of now, JPM Coin's daily trading volume has exceeded $1 billion.

In addition to its standard payment functions, JPM Coin's future goal is to create a compliant stablecoin with multi-functional capabilities, including programmable features, tokenized deposits, and asset tokenization settlement.

Introduction to Onyx

Onyx is a crypto asset service platform under J.P. Morgan, offering a range of services that optimize existing financial systems using blockchain. Its user base mainly consists of financial institution operators, and the services provided include:

• Liink: A network for securely and efficiently transmitting information between banks.
• Coin Systems: Involves the stablecoin JPM Coin and its related applications, such as settlements.
• Onyx Digital Assets: Assists financial institutions in tokenizing a portion of assets, RWA, and related services.
• Blockchain Launch: Assists traditional institutions in constructing blockchain services.

Coin Systems is the project plan for creating applications for JPM Coin, serving as a crucial token system within the Onyx blockchain service platform.

JPM Coin to Enable Interbank Transfers

The vision and goals of JPM Coin mentioned above require collaboration with other financial institutions to be achieved. Recently, JPM Coin announced its ability to conduct interbank transfers, a departure from only handling in-house banking transactions in the past, which is expected to significantly enhance efficiency and use cases.

JPM Coin was released on the blockchain-based bank settlement system, Partior, and may be used for interbank transactions, allowing institutional clients to trade using crypto assets between these banks.

Introduction to Partior

Partior is a consortium chain settlement platform jointly launched by J.P. Morgan, DBS Bank, Standard Chartered Bank, and Temasek Holdings, aiming to provide a channel for rapid currency transactions for global financial institutions, eliminating much of the time and cost involved in traditional financial settlements.

Partior's network relies on operational nodes of institutions, including banks, financial institutions, asset management platforms, technology company partners, etc., to ensure transaction security and control.

In addition to facilitating transaction transfers, Partior will also be able to execute smart contracts.

J.P. Morgan Leads U.S. Competitors

Compared to other financial institutions, J.P. Morgan is more advanced in the blockchain industry. Apart from the technical strength of its in-house Onyx blockchain team, its compliance team also plays a crucial role.

J.P. Morgan leads other unlicensed U.S. banks, having received a no-objection letter from the U.S. regulatory banking agency, the Office of the Comptroller of the Currency (OCC), for its use of Partior as early as May, which paved the way for JPM Coin to offer interbank services today.

Other bank operators, including the previous Silvergate, cannot engage in interbank cryptocurrency transactions without permission, making JPM Coin's provision of interbank services a significant breakthrough in today's stringent U.S. regulatory environment.

Projected Usage of JPM Coin

The market anticipates that JPM Coin's inclusion in Partior may increase its usage. According to a report by Bloomberg, Umar Farooq, the global head of J.P. Morgan's financial institutions payments, expects JPM Coin's global daily transactions to reach $10 billion within the next one to two years.

J.P. Morgan Gradually Establishes Dominance in the Crypto Field

With its existing political and commercial influence, J.P. Morgan contributes to advancing the development of U.S. crypto-related regulations. Compared to other American financial institutions, J.P. Morgan is gradually deepening its presence in the crypto field, showcasing its influence.

However, despite J.P. Morgan's $5 trillion daily trading volume in traditional finance, blockchain business remains niche, and there are many infrastructural and regulatory improvements needed, including open access for general users and well-designed platforms for a good user experience. JPM Coin still has a long way to go.