Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

JPMorgan Chase Rolls Out Digital Coin and Creates New Unit for Digital Currencies

By Bram Berkowitz - Oct 27, 2020 at 12:14PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The JPM coin will be used commercially for the first time this week. The bank also has a new unit to oversee digital currency initiatives.

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.

JPMorgan Chase

Image source: JPMorgan Chase.

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. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

JPMorgan Chase & Co. Stock Quote
JPMorgan Chase & Co.
$159.53 (-1.04%) $-1.68
PayPal Holdings, Inc. Stock Quote
PayPal Holdings, Inc.
$181.32 (-3.12%) $-5.83

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/03/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.