Banking giant JPMorgan Chase & Co. is exploring a blockchain-based digital payment and settlement system, according to Bloomberg News.
JPMorgan developed much of the infrastructure for the project, which requires a digital deposit token, but can't move ahead with system before getting the go-ahead from U.S. regulators, Bloomberg reported, citing a person familiar with the matter. After obtaining approval, the firm could launch the project for corporate clients within a year.
The proposed digital token payment and settlement system could hasten transaction speed while lowering costs, with the deposit token representing a digital version of a customer's deposits. It could be used to send funds to users of a different bank or settle tokenized securities.
JPMorgan's past blockchain experiments
The U.S. bank has collaborated with the Monetary Authority of Singapore to test a deposit token payment system last year.
"JPMorgan continues to develop blockchain-based solutions for financial services and sees deposits accessible on the public blockchain as the next step in the evolution of digitized commercial bank money," Umar Farooq, CEO of JPMorgan's web3 arm Onyx, said in a 2022 statement.
The firm launched its own cryptocurrency called JPMorgan Coin in 2019, The Block previously reported.