J.P. Morgan Chase has announced “JPM Coin,” a blockchain token that will serve as both a stablecoin and a settlement tool. The financial giant has announced the coin on its official website, and the project has already garnered plenty of mainstream attention. JPM Coin is, however, extremely exclusive—how does it relate to the larger crypto landscape?
A Private Solution
Although JPM Coin is pegged to the dollar just like Tether is, the new coin will mainly serve needs that are particular to financial institutions and their clients. JPM Coin can be used to make international payments, perform securities transactions, and replace certain types of fiat holdings. J.P. Morgan’s Umar Farooq explains the benefits of the coin:
“Money sloshes back and forth all over the world in a large enterprise…Is there a way to ensure that…