JPMorgan Leveraging Blockchain for Cross-Border Settlement

The bank’s token, JPM Coin, which already processes $2 billion in transactions every day, will be used for the settlement processes.

Banking giant JPMorgan is planning to introduce an instant settlement platform for international currency conversion between the dollar and the euro, to be later expanded to include the pound sterling.

The settlement system will be powered by JPM Coin, which runs on JPMorgan’s own blockchain dubbed Kinexys that already processes over $2 billion in transactions daily.

At present, JPM Coin enables participating institutions to make payments in dollars and euros. The project marks one of the few instances of a major bank implementing a digital ledger on a broad scale, though it still handles only a small fraction of the $10 trillion that JPMorgan moves each day.

Next up is the ability for JPM Coin to perform conversions between the dollar and the euro with immediate settlement. The bank is also working on obtaining the necessary approvals to add the pound sterling as a settlement option.

Depending on the currency combination, traditional foreign exchange settlement typically takes anywhere from one to two days. However, this rapid settlement service will enable one of the largest payments facilitators in the world to cater to new clients, including fintech firms.

What do you think about JPMorgan’s introduction of an instant settlement platform for international currency conversion? Let us know in the comments section below.