In a redefining moment for blockchain technology, JPMorgan Chase & Co. has officially launched their own cryptocurrency. It's called JPM Coin, and it fights the notion that decentralized currency ought to be decentralized at all.
The JPMorgan cryptocurrency is changing up the company's configuration
On Tuesday, Oct. 27, JPMorgan released their cryptocurrency JPM Coin for commercial use. Already this week, the company has used their blockchain-based currency to send payments across the nation's border.
JPM Coin is just another USD backed stablecoin. One of many. Same nostro/vostro as before. Counter party risk of JPM.— Anders L (@X__Anderson) October 28, 2020
According to Takis Georgakopoulos, Global Head of Wholesale Payments at JPMorgan, an unnamed tech client was the one to make the transaction.
Sending large amounts of money out of the U.S. is nothing new for JPMorgan. In fact, they move more than $6 trillion throughout 100 nations on any given day. This new cryptocurrency is yet another way for JPMorgan clients to do so (and more discretely than ever).
However, the JPM Coin is altering the setup of the company. They're adding a new unit called Onyx to handle all things blockchain and digital currency.
Reportedly, Umar Farooq will serve as CEO of the Onyx unit, alongside the company's overall CEO Jamie Dimon.
While news of JPM Coin usage is limited to one large tech company so far, JPMorgan says more clients are already interested in taking part. Onyx will focus their blockchain services toward companies looking to save money on large wholesale payments.
Recently, PayPal announced it will link its service up with Bitcoin and Ethereum, two of the largest cryptocurrencies out there. Square also announced a similar move earlier.
Even without a price, JPM Coin boosts Bitcoin valuation
We don't have a JPM coin price just yet, but one thing is for certain. Bitcoin investors are rallying in response to the news. The original cryptocurrency rose about 5.0 percent on Oct. 27 at the same time JPMorgan dropped their news. We can also trace this rise back to recent news from Square and PayPal.
JPMorgan Chase stock today
JPMorgan Chase & Co. ("JPM" on the NYSE) dropped 2.04 percent in pre-market trading on Wednesday, Oct. 28. Their stock dropped a total of 4.34 percent this week after rising 4.55 percent in the latter half of the previous week. Overall, JPM is working to steadily climb back up its ladder after a volatile year.
Rob Holmes leaves JPMorgan for Texas Capital Bank
On Oct. 27, Former Global Head of Corporate Client Banking and Specialized Industries at JPMorgan, Rob Holmes transitioned to Texas Capital Bank ("TCBI" on the Nasdaq Exchange) as the company's new CEO.
According to Texas Capital Bank's former CEO Larry Helm, "Rob brings more than 30 years of experience and a proven record of driving innovation, building client relationships, developing talent and fostering a strong culture founded on collaboration, transparency and accountability."
Holmes once led JPMorgan's North American Retail Industries Investment Banking practice before moving up in rank. Now, it seems, he's moving on—and with Onyx and JPM Coin, so is JPMorgan Chase.