Bloomberg Drops The Bomb: JPMorgan Taunts Blockchain-Based Payment and Settlement System

JPMorgan makes the news all over again, and this time, the issues involve the use of blockchain. Check out the latest reports about all this below.

There are reports that JPMorgan Chase & Co., the massive banking corporation, is looking into developing a digital payment and settlement system based on blockchain technology.

These reports suggest that JPMorgan has already created much of the required infrastructure for this project, which would involve the use of a digital deposit token.

However, the system cannot be launched until it receives approval from U.S. regulators. Once that approval is obtained, JPMorgan could make the system available to corporate clients within a year.

This system has the potential to speed up transactions while reducing costs, as the deposit token represents a digital version of a customer’s deposits.

It could be used to transfer funds to individuals with accounts at different banks or to settle securities in tokenized form.

The U.S. bank has teamed up, according to the notes, with the Monetary Authority of Singapore to test a deposit token payment system back in 2022.

“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 crypto called JPMorgan Coin in 2019, The Block previously reported.

A customer of JPMorgan Chase was recently scammed out of $24,000, but unfortunately, the bank has stated that they cannot do anything to help. The scammer had directed the funds into a Chase bank account, which they had access to.

On June 6th, Todd Kirby got a text message that appeared to be from Chase, inquiring if he had authorized a $4,000 transfer. Kirby denied the transaction and soon after, he received a call from the phone number on his Chase debit card.

A fraudulent representative spoke to him and persuaded him to move all his funds to another Chase account set up by the scammer. The conversation lasted for a few days.