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JP Morgan Chase Blockchain Unit Onyx Goes Live
05 November, 2020: By Ajoy Maitra

Blockchain Technology holding the key to transparency and future of investment, unlocks its potential application in Digital Currency. Since the publish as on February, 2019 - J.P. Morgan has been the first U.S. bank to create and successfully test a digital coin based on the blockchain technology, representing the fiat currency - Dollar. A digital token named 'JPM Coin' has been created mainly as means of settlement for wholesale payments business, easing out the process of transaction eliminating laggared cross-border payments or potential rejection for various other issues.


As stated by Umar Farooq, Head of J.P. Morgan's blockchain projects,
So anything that currently exists in the world, as that moves onto the blockchain, this would be the payment leg for that transaction.

As blockchain represents a chain of distributed ledgers among the participants, all the ledgers get updated according to the initiated transaction secured by disparated keys and signatures. Immutable in reality, such blockchain ensures highest level of security and transparency without any scope for manipulation of transaction or denial of commitment.

At the latest news, JP Morgan has informed CNBC that their digital currency - JPM Coin is being commercially used by large technology companies to send real-time payments around the world, putting an end to the discrepancies of rejection due to errors or other issues, which leads to a higher settlement cost. Creating a model of participation, banks can charge few cents for the data confirmation involved in such transactions.



Apart from the real-time settlements, such technology of a digital token currency has the potential to reduce the amount of time and physical involvance of people in processing of paper checks. A digital currency set in a blockchain environment rather simplifies the effort in check processing through secured network of crypto. Takis Georgakopoulos, Head of Wholesale Payments for J.P. Morgan's Corporate & Investment Bank (CIB), has further detailed as,


Using a version of blockchain with the participants being the main issuers of checks and the main operators of lockboxes, it's possible we can save 75% of the total cost for the industry today, and make checks available in a matter of minutes as opposed to days.

The concept of digital currency and implementation of blockchain into such, has long been researched on among many countries all over the world as it further gets delayed in the process for the unregulated matter being in turmoil for acceptance. However, J.P. Morgan with its latest introduction to the launch of 'Onyx' as an initiative to venture forth the business capabilities of blockchain and digital currency, has extended further implementation of distributed ledger technology to provide clients with best-in-class platforms. Mr. Georgakopoulos has told CNBC that,


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. . .

J.P. Morgan's initiative into going live with a blockchain based digital currency, can prove beneficial for the industries and broaden further to let such technology into the finance mainstream. Technologies with their incessant emergence unveils new stages of potential to be explored further while making space for increased employment opportunities. Referring to Gartner Hype Cycle - a model for adoption of new technologies, Mr. Farooq has stated,


If you think about blockchain, we are either somewhere in the trough of disillusionment or just beyond that on the hype curve. . .That's why at JPMorgan we've been relatively quiet about it until we were ready to scale it and commercialize it.