JPMorgan Chase ( JPM -1.04% ) is making a lot of progress on its digital currency initiatives. The bank is reportedly set to put its own digital currency, the JPM coin, to use this week for the first time, while also creating its own division to oversee all crypto and digital currency initiatives, according to media outlets.
A large technology client will use the JPM coin to conduct global payments activity, according to Takis Georgakopoulos, the bank's global head of wholesale payments. Georgakopoulos, according to CNBC, also said the new digital currency division will be called Onyx and have more than 100 employees.
"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," Georgakopoulos said.
The idea of using blockchain technology for commercial use has been in the works for a long time. But now, companies really seem to be rolling out new products and features that allow businesses and consumers to use it on their networks.
For instance, PayPal Holdings ( PYPL -3.12% ) recently announced that its customers would be able to buy and sell various cryptocurrencies on its platform. Furthermore, the company said customers could use the digital assets to make purchases from its network of 26 million merchants.
JPMorgan created the JPM coin in February of 2019 as a way for customers and clients to exchange money through blockchain technology. According to Georgakopoulos, JPMorgan's digital coin could save money and make the payments process more efficient.
For instance, blockchain technology could help banks confirm that people inserted their account information correctly before sending a digital payment, thus avoiding rejections on payments. Digital currencies could also remove a lot of expenses associated with processing paper checks, Georgakopoulos said.