Siemens AG was the first corporate firm to complete the euro-denominated payment with the company's blockchain innovation.
JPMorgan, the United States-based investment banking giant, extends the use of its blockchain innovation, JPM Coin, to the traditional banking sector, enhancing the capabilities of conventional finance.
According to the Bloomberg report shared on June 23rd, two days earlier, on June 21st, the banking heavyweight gave the green light to its JPM Coin to facilitate euro transactions for its corporate clientele.
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Basak Toprak, who oversees JPMorgan's Coin Systems for Europe, the Middle East, and Africa, declared that Germany's corporate Siemens AG was the first entity to carry out a euro payment using this platform.
JPM Coin's system allows clients, encompassing vast multinational corporations, to swiftly transfer euros to and from their JPMorgan accounts at any time. This stands in sharp contrast to standard banking operations, typically limited to standard business hours.
Pointing out the cost-effectiveness of timely payments, Toprak highlighted the potential for clients to garner more interest income from their deposits, stating:
There are cost benefits to paying at the right time. This could mean they could earn more interest income on their deposits.
Since its launch in 2019, JPMorgan reportedly facilitated around $300 billion of transactions via JPM Coin. However, plans for expanding the system are in motion, given that JPMorgan's daily payment volumes are said to be approximately $10 trillion.
Meanwhile, reports suggest that JPMorgan may face a $4 million fine imposed by the US Securities and Exchange Commission due to alleged mismanagement of internal communications.
In 2019, the bank accidentally deleted around 47 million emails from its retail banking group, dating from January 1st to April 23rd, 2018. According to US securities laws, financial firms must retain business records for at least three years.
JPMorgan's JPM Coin has further strengthened its position in the intersection of traditional banking and blockchain technology by empowering euro transactions, even amidst the bank navigating potential regulatory challenges.
