JP Morgan has just announced the launch of their new blockchain unit–Onyx–and says their JPM Coin is currently being used by a “large technology client” to send payments around the world.
“We are launching Onyx because we believe we are shifting to a period of commercialization of those technologies, moving from research and development to something that can become a real business,” said Takis Georgakopoulos, JP Morgan’s global head of wholesale payments.
JP Morgan has finally found a way to make their blockchain branch profitable, unlike their blockchain Quorum which they sold to ConsenSys in August.
JP says that Onyx has been five years in the making, and from the looks of it, JP Morgan is focusing on using a blockchain to digitize money to reduce costs around global transactions.
Reducing costs
When it comes to cross-border payments, JP Morgan moves roughly $6 trillion a day to over 100 countries. According to Onyx CEO Umar Farooq, blockchain and JP Morgan’s stablecoin JPM Coin creates the perfect opportunity to reduce costs in that sector.
JPMorgan creates new division Onyx focused on #blockchain, JPM Coin is LIVE, the 400 bank network Liink has a new LIVE app to Confirm account info before payments to prevent fraud https://t.co/nVWlGvURNh
— Christine Moy $APO 💎🔥🦈 (@cmoyall) October 27, 2020
To accomplish this, JP Morgan has rebranded its Interbank Information Network–JP Morgan’s network of 400 banks and corporations looking to use JPM Coin–to ‘Liink,’ and will use that branch of their business to validate payments before they are sent.
JP Morgan also plans on using its blockchain to reduce expenses that are created by using paper checks for payment.
“We’re talking about hundreds of millions of checks being sent,” said Georgakopoulos “Using a version of blockchain with the participants being the main issuers of checks and the main operators of lockboxes, it’s possible we can save 75% of the total cost for the industry today, and make checks available in a matter of minutes as opposed to days.”
Momentum is building
Momentum is building in the blockchain and digital currency space. Several major corporations have recently announced their entrance into the blockchain and digital currency services with JP Morgan being the latest to announce the approach they will be taking in the industry.
Many of the corporations will be launching their service offerings in the coming weeks and months, and the launch of each is bound to have a positive impact on the blockchain and digital currency markets.
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.
