JPM Coin Owned By JPMorgan Chase Is Expected To Be Able To Handle Daily Transactions Of Up To IDR 155 Trillion

The world's largest investment giant JPMorgan Chase. (Photo; Doc. CryptoTY)

JPMorgan Chase & Co is one of the largest investment banks in the world, with total assets reaching US$3.213 trillion in 2020. The bank was founded by John Pierpont Morgan, a banker and industryist who was famous for saving the US financial crisis in 1907.

After launching JPM Coin some time ago, JPMorgan Chase, as the largest bank in the United States, has big ambitions for its digital token. Umar Farooq, the bank's Global Head of Financial Institution Payments, said that JPM Coin is expected to be able to handle daily transactions of up to $10 billion (IDR 155 trillion) in the near future.

Farooq conveyed his predictions in an interview at the Singapore FinTech Festival on Wednesday, November 15. He said that JPM Coin is currently processing around $1 billion (IDR 15.5 trillion) per day, and he hopes that the figure will increase five to ten times in the next year or two.

"We believe this [JPM Coin] will soon take off," he said.

JPM Coin is a digital token supported by JPMorgan's personal blockchain. This token is used to facilitate payments in dollars and euros for wholesale clients, such as banks, companies, and other financial institutions.

JPM Coin is one of the blockchain innovations that has been successfully implemented by big banks. However, this token is still far from the expected plan, which reaches the daily transaction volume of JPMorgan which reaches $10 trillion.

Blockchain technology is considered a solution that can increase efficiency, speed, and payment costs. However, the main challenge is how to test and adapt digital ledgers to the scale and security required by traditional payment networks.

JPMorgan does not stop at JPM Coin. The bank is also developing a blockchain-based payment system called Onyx, which offers programmable payment features for its digital tokens. This feature allows clients to automate payments, setting certain conditions to trigger movement of funds, such as late payments and call margins.

One of JPMorgan's clients who already took advantage of this feature is Siemens, a German company. Navien Mallela, head of the global coin system at Onyx, said Siemens used JPM Coin this week to set up an account for transfers, avoiding potential funding problems.