The recent collapse of leading traditional crypto banks like Signature, Silicon Valley, and Silvergate and ongoing SEC battles with top crypto exchange platforms like Coinbase and Binance are negatively affecting the crypto industry. However, blockchain technology retains a potential use in the financial industry, opening up new opportunities for commerce across global borders.
Recently, a leading traditional financial institution, JP Morgan Chase, announced the integration of Euro payments into its blockchain payments system, marking a significant advancement in the use of blockchain technology within traditional banking.
JP Morgan Joins Crypto Trend
On June 23, JPMorgan Chase, one of the most renowned financial companies globally, announced a new feature to its blockchain technology platform, JPM Coin. With this new addition, the system can now process payments in euros for clients who use their business accounts.
Data shows that JPMorgan’s JPM Coin technology, created primarily for US Dollar transactions, has facilitated an astounding $300 billion transaction. The JPM Coin system enables users to transfer US Dollars held on deposit with the bank, facilitating real-time liquidity financing and payment activities.
The banking industry uses the system as a payment method, but it’s built on blockchain technology and requires user permission before use. However, incorporating Euro payment capabilities will boost the system’s reach and potential influence on operations in global financial markets.
Bitcoin Continuous Uptrend Drawing Institutional Attention
With Bitcoin’s price on the uptrend, recording a 20% spike to surpass the $30,000 threshold this week, an increasing number of institutions are showing an increased interest in blockchain and crypto use cases. JP Morgan’s integration of support for Euro payments into its blockchain payments system demonstrates the financial service industry’s increasing adoption of blockchain technology.
Besides JP Morgan, other traditional finance corporations are making moves to launch crypto custody services. For instance, BlackRock, with more than $8 trillion in assets under its management, submitted a filing with the US SEC earlier this week to launch an exchange-traded fund (ETF) that tracks the spot price of Bitcoin.
Many other fund managers, notably WisdomTree and Invesco, have taken similar steps as BlackRock, even though the US financial regulator hasn’t indicated whether it would approve the ETF proposals.
Meanwhile, JP Morgan has clarified that their blockchain payment system differs from cryptocurrencies and does not tokenize customer assets. The bank’s move to incorporate Euro payments on its blockchain platform is of huge significance given that it processes nearly $10 trillion in transactions per day.
However, the firm noted that these transactions only comprise a relatively small part of its business. Nevertheless, the recent development is proof of JP Morgan’s research about integrating blockchain technology with traditional finance systems.
Industry experts predict blockchain technology will revolutionize various industries, particularly the financial sector. Hence, it is no surprise that recent developments prove the forecasts are right.
Recent developments indicate that banking institutions can use blockchain technology to increase global financial transactions’ speed, security, and transparency. Hence, other sectors will likely emulate the finance industry in integrating blockchain technology into their operations.
