JP Morgan's JPM Coin Is Used For Interbank Transactions

JAKARTA – JP Morgan as one of the world's leading investment banks has issued its own blockchain-based token called JPM Coin. Recently, JPM Coin has been used in Partior, a blockchain-based banking transaction system.

For your information, Partior is the result of mutual cooperation between a number of leading banking companies and investment managers in the world such as JPMorgan, Temasek, Standard Chartered and DBS Bank. Partior allows users to carry out interbank transactions by utilizing assets based on blockchain technology.

Partior offers fast and instant multi-currency transactions between the financial institutions that make up Partior. Meanwhile, JPM Coin is expected to be able to complete billions of transactions either within the bank itself or between banks. The Partior  project is based in Singapore and has already been activated. The developer has also provided a user guide.

According to the Ledger Insights report, DBS Bank is active and can use Partior, but a number of other banks cannot use it yet. While JPMorgan is ahead of other US-based banks it still has to get permission to use this kind of solution, having received a no-objection letter from the United States Office of the Comptroller of the Currency for Partior's use in May.

Still, JPM Coin's inclusion in Partior will likely increase its use, given the size and significance of JPMorgan's blockchain token and its near-universal presence in the banking market. In October, JPMorgan Global Head of Payments, Takis Georgakopoulos, stated that the token was used to complete transactions worth 1 billion US dollars or the equivalent of IDR 15.5 trillion per day.

Umar Farooq, as JPMorgan Global Head of Financial Institution Payments, hopes to increase the number of transactions via this network to up to 10 billion US dollars (IDR 155 trillion). This increase is projected to occur in the next one to two years.