JP Morgan Chase has established a new business unit dedicated to work on blockchain and digital currency, a move that coincides with the recent profitability of its stablecoin, according to a CNBC relationship Tuesday (October 26).
The new business unit – Onyx – has a dedicated staff of 100 and is headed by Umar Farooq, who will serve as CEO.
JPM Coin launched in 2019 and for the first time has a paying customer, a large tech company, said Takis Georgakopoulos, head of global wholesale payments.
“We are launching Onyx because we believe we are moving into a period of commercialization of those technologies, moving from research and development to something that can become a real business,” Georgakopoulos told CNBC.
JP Morgan moves over $ 6 trillion a day in 100 countries and is among the largest companies in the industry. The bank has been looking for solutions to streamline wholesale payments and save millions in the industry, Georgakopoulos said.
Paper check processing is another area that could save banks money if simplified. Currently, several people are needed at physical locations to process controls. Georgakopoulos believes it can be managed with a digital exchange of information, completely bypassing the mail.
“We are talking about hundreds of millions of checks sent,” said Georgakopoulos. “By using a version of blockchain with participants who are major check issuers and major safes operators, it is possible that today we can save 75% of the total cost to the industry and make checks available in minutes rather than days. . “
JP Morgan started doing this expand its use of blockchain technology last year, with the intention of improving the banking sector’s payment system and encouraging FinTechs to experiment with the development of the platform.
PayPal recently announced that it will soon offer customers the ability to buy, hold and sell cryptocurrencies. As of early 2021, ethereum, Bitcoin Cash and litecoin will be able to be used to transact with 26 million merchants across the company’s network.