5 things JPM Coin will do for banking and blockchain
JPMorgan Chase's digital currency launch is being hailed by some industry observers as the first step toward broader adoption of blockchain technology in financial services.
It’s not the first bank to explore this territory. UBS launched a centralized, private project in 2015 that attracted several other megabanks, including Barclays and HSBC. Other banks have their own initiatives, including Northern Trust’s private equity blockchain. Bank of Montreal joined several European banks in developing Batavia, a blockchain trade-finance platform. In November, BBVA completed the first-ever syndicated loan on a distributed ledger. ING and Credit Suisse have tested securities lending on the blockchain consortium R3.
But, observers note, the public support of JPMorgan — one of the largest banks in the world — gives blockchain technology a credibility boost in the eyes of industry peers, regulators and even consumers.
What then will greater adoption of blockchain enable in banking at large? Here's a rundown of five potential impacts on banking and payments.