J.P. Morgan has created a new blockchain unit called Onyx and said its JPM Coin is ready for commercial use. Takis Georgakopoulos, global head of wholesale payments at J.P. Morgan, told CNBC that a large international technology company is already using JPM Coin for cross-border payments. He did not disclose the company’s name, as reported in the Block.
The blockchain-based token JPM Coin was launched in February 2019. At the time, the bank said it would be used to settle cross-border payments in a faster and cheaper manner as redundancies are removed. Each JPM Coin is redeemable for one US dollar or other fiat currencies. As part of its blockchain offerings, the bank is also reportedly looking to create new, separate payment rails for central banks that have shown interest in creating digital currencies.
J.P. Morgan has also renamed its blockchain-based network called Interbank Information Network to Liink, in which participants would get access to two applications called “Confirm” and “Format.” Confirm allows for the validation of account information prior to initiating a payment to reduce operating costs related to payment instruction errors and potentially help reduce fraud. Format enables payment instruction validation to check whether a payment message accurately conforms to key country and currency-specific information requirements.