{"id":101289,"date":"2020-10-30T16:43:46","date_gmt":"2020-10-30T13:43:46","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/jpm-coin-debut-marks-start-of-blockchains-value-driven-adoption-cycle\/"},"modified":"2020-10-30T16:43:46","modified_gmt":"2020-10-30T13:43:46","slug":"jpm-coin-debut-marks-start-of-blockchains-value-driven-adoption-cycle","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/jpm-coin-debut-marks-start-of-blockchains-value-driven-adoption-cycle\/","title":{"rendered":"# JPM Coin debut marks start of blockchain\u2019s value-driven adoption cycle"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a28a847da20f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a28a847da20f\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/jpm-coin-debut-marks-start-of-blockchains-value-driven-adoption-cycle\/#Making_an_impact\" >Making an impact<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/jpm-coin-debut-marks-start-of-blockchains-value-driven-adoption-cycle\/#JPMorgan_sets_up_a_dedicated_blockchain_outfit\" >JPMorgan sets up a dedicated blockchain outfit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/jpm-coin-debut-marks-start-of-blockchains-value-driven-adoption-cycle\/#Blockchain_tech_and_banking_go_together\" >Blockchain tech and banking go together<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># JPM Coin debut marks start of blockchain\u2019s value-driven adoption cycle  <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjAtMTAvYzE3ZDMxYmMtZWI4Ni00OTk2LWFjNGQtYTE5ZDJlNjIxNzg5LmpwZWc=.jpeg\" \/><\/p>\n<div data-v-5a136f3a=\"\">On the heels of PayPal announcing its decision to enter the crypto sector early next year, Bitcoin (BTC) has continued its strong performance and has been hovering around the $13,500 mark for nearly a week now. In this regard, the payment giant\u2019s foray into the crypto market has been hailed as a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> changer, especially when it comes to improving the mainstream perception of the digital asset industry as a whole.<\/p>\n<p>Not only that, JPMorgan Chase announced that its native digital currency offering \u2014 the JPM Coin \u2014 has finally been deployed for mainstream use by one of the firm\u2019s technical associates. The token is designed to facilitate JPMorgan Chase\u2019s various cross-border monetary transactions.<\/p>\n<p>The origins of the JPM Coin can be traced back to early 2019, when the banking giant announced its plans to release a dollar-backed cryptocurrency that would eventually be used to process its internal and international transfers. Now, JP Morgan seems to have finally delivered on its promise of building a solution that could potentially save the global finance industry hundreds of millions of dollars in peripheral costs such as processing charges, high tax fees and more.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Making_an_impact\"><\/span>Making an impact<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As things stand, JPMorgan is one of the largest players operating within the global payments landscape, with the firm <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2020\/10\/27\/jpmorgan-creates-new-unit-for-blockchain-projects-as-it-says-the-technology-is-close-to-making-money.html\">reportedly<\/a> facilitating transfers in excess of $6 trillion across more than 100 countries on a daily basis. Brian Behlendorf, executive director at Hyperledger, an enterprise-grade permissioned blockchain framework, told Cointelegraph that, in his estimation, the move will most likely fail to have any sort of major impact on market, especially since JPMorgan\u2019s payment network is sealed off from those not fungible with them:<\/p>\n<blockquote><p>\u201cConsumers likely won\u2019t even be aware of them \u2014 it\u2019ll show up perhaps as reduced fees to move money between accounts or other kinds of trades, etc. Professional investors may notice they have new kinds of assets available in their portfolios in the form of these stablecoins, but they\u2019re not really \u2018investments\u2019 so much as more convenient ways to move money.\u201d<\/p><\/blockquote>\n<p>However, Behlendorf did concede that, by and large, the move does represent an additional step toward the mainstream adoption of crypto and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> that is now ready for prime-time, industrialized use.<\/p>\n<p>With a centralized token being deployed, it stands to reason that blockchain technology is finally ready to generate some serious returns for its users. Paul Brody, principal and global innovation leader for blockchain technology at Ernst &amp; Young, told Cointelegraph that even though people may be just beginning to realize the financial potential of this technology, blockchain has quietly been generating substantial value for many companies over the last few years.<\/p>\n<p>Additionally, Brody believes that trusted payments for enterprise users from big-brand-name banks will have a positive impact on the market at large because much of the work being done on-chain so far is operational, but payments are still being completed off-chain. Furthermore, the entry of JPM Coin could help \u201cmore enterprises get comfortable with the idea of closing the loop and running an entire business process on-chain.\u201d He added:<\/p>\n<blockquote><p>\u201cThe market for global, cross-border payments has not had much competition until recently, so I think the addition of new players, regardless of their technology, will have a positive impact. What does matter a great deal is that for business to business payments, if you can make payments a part of a fully digital business contract, you can hugely reduce the cost of running a cross-border deal for enterprises, and that is quite revolutionary.<\/p><\/blockquote>\n<p>Behlendorf also pointed out that private commercial tokens similar to JPM Coin have been in production for a few years, primarily as settlement mechanisms for trade finance. Not only that, he stated they have also been implemented across other banking, securities and bond markets in Asia and Europe: \u201cU.S. business blockchain networks have been generating business value in other ways as well, from supply chain traceability to KYC and regulatory compliance, and so on, even JPM\u2019s own IIN network.\u201d<\/p>\n<h3><span class=\"ez-toc-section\" id=\"JPMorgan_sets_up_a_dedicated_blockchain_outfit\"><\/span>JPMorgan sets up a dedicated blockchain outfit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In a recent <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2020\/10\/27\/jpmorgan-creates-new-unit-for-blockchain-projects-as-it-says-the-technology-is-close-to-making-money.html\">interview<\/a>, JP Morgan\u2019s global head of wholesale payments stated that the launch of JPM Coin as well as certain other \u201cbehind the scenes moves\u201d prompted the banking giant to create a new business outfit called Onyx. The unit will allow the company to spur its focus on its various ongoing blockchain and digital currency efforts.<\/p>\n<p>Onyx reportedly has more than 100 staff members and has been established with the goal of commercializing JP Morgan\u2019s various envisioned blockchain and crypto projects, moving existing ideas from their research and development phase to something more tangible. <\/p>\n<p>When asked about their future plans and if crypto factors majorly into the company\u2019s upcoming scheme of things, a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> relations representative for J.P. Morgan told Cointelegraph that there are no additional announcements on top of what was already unveiled recently.<\/p>\n<p>Lastly, on Oct. 28, the bank <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.businesswire.com\/news\/home\/20201027006268\/en\/J.P.-Morgan-Adds-New-Features-to-Newly-Branded-Liink%E2%84%A0\">announced<\/a> that it was going to rebrand its blockchain-based Interbank Information Network, or IIN, to \u201cLiink\u201d as well as introduce two new <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications \u2014 Confirm and Format \u2014 that have been developed for specific purposes of account validation and fraud elimination for its clients. Liink will be a part of the Onyx ecosystem and will enable participants (over 400 financial institutions) to collaborate with one another in a seamless fashion.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Blockchain_tech_and_banking_go_together\"><\/span>Blockchain tech and banking go together<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It\u2019s not far-fetched to think that the marriage of blockchain technology and the banking sector could completely revolutionize the way in which day-to-day business transactions are facilitated by financial institutions across the globe. For example, decentralized transaction frameworks cannot only make cross border transactions cheaper but can also substantially improve on the transparency aspect.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Crypto Banks Answer the Call Amid Coronavirus-Fueled Economic Decline<\/em><\/strong><\/p>\n<p>However, Behlendorf said that the banking industry has largely been digital for decades, with very few organizations shipping around physical hard currency or other hard assets as a way of settling payments between financial institutions anymore, adding:<\/p>\n<blockquote><p>\u201cWhat\u2019s new is using a DLT as the settlement layer rather than relying upon human audits and regulatory trust. The digitization of cash is a very different matter, and Alipay\/Wechat Pay and Paypal and Venmo etc. has likely done far more to hasten the end of physical cash than any blockchain today or likely will over the next ten years.\u201d<\/p><\/blockquote>\n<p>However, he then proceeded to add that as convenient as these digital payment mediums may be, there are some drawbacks due to their underlying architecture: \u201cWe should be very wary of giving up the anonymity that physical cash provides.\u201d<\/p>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/jpm-coin-debut-marks-start-of-blockchain-s-value-driven-adoption-cycle\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# JPM Coin debut marks start of blockchain\u2019s value-driven adoption cycle &#8221; On the heels of PayPal announcing its decision to enter the crypto sector early next year, Bitcoin (BTC) has continued its strong performance and has been hovering around the $13,500 mark for nearly a week now. In this regard, the payment giant\u2019s foray&#8230;<\/p>\n","protected":false},"author":1,"featured_media":101290,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-10\/c17d31bc-eb86-4996-ac4d-a19d2e621789.jpeg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74888,74894,75802,76574],"class_list":["post-101289","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-banking","tag-blockchain","tag-jpmorgan","tag-paypal"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/101289","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=101289"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/101289\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/101290"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=101289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=101289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=101289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}