According to the CNBC report, JPMorgan furthered its blockchain efforts this week with two major announcements. JPMorgan’s digital currency JPM Coin is being used commercially for the first time this week by a large technology client to send payments around the world, said Takis Georgakopoulos, the bank’s global head of wholesale payments. That development, along with other behind-the-scene moves, persuaded JPMorgan to create a new business to house the blockchain and digital currency efforts called Onyx, Georgakopoulos said in an interview with CNBC.
JPM Coin was being used internally for some time.
JPMorgan had originally announced its stablecoin in February last year, but the bank was only using the coin for internal transactions at the time of the announcement. The firm additionally suggested pilot tests would begin in late 2019. However, JPMorgan did not indicate that the coin was being fully used in commercial situations until now. This new announcement implies that JPM Coin is ready for widespread use. However, it is still not available to retail customers, and JPMorgan’s website still says that it doesn’t “have plans to make the stablecoin available to individuals.”
JPMorgan also announced its new subsidiary Onyx.
Georgakopoulos also revealed in the interview the firm’s new subsidiary, Onyx, which serves as a business for its blockchain projects. He added that Onyx is meant to commercialize JPMorgan’s earlier blockchain work. The subsidiary firm currently handles JPMorgan’s Interbank Information Network, which has been rebranded Liink. This blockchain product is intended for use in regulatory compliance, account information management, and the digitization of payments. It could be used to remediate banking errors or eliminate paper checks, for example. In other words, the platform primarily handles banking-related information rather than digital assets.