- Siemens AG facilitated the transaction.
- JPM Coin has completed about $300 billion of transactions since its inception.
JPMorgan has completed the first euro-denominated payment on its permissioned blockchain. The JPM Coin transaction was completed in partnership with Siemens AG and marked one of the first instances a significant financial institution tested a blockchain application.
JPMorgan’s head of Coin Systems for Europe, the Middle East, and Africa, Basak Toprak, said the euro transactions took place on Wednesday, according to a report by Bloomberg. A representative from Siemens AG reportedly confirmed the cross-border payment.
JPM Coin is a permissioned distributed ledger and not publicly available. It was launched by JPMorgan in 2019. Since it went live, The bank has used the blockchain platform to process approximately $300 billion of transactions. The amount, however, is minimal compared to JPM’s about $10 trillion worth of payments processed daily.
Benefits of Permissioned Blockchains
The permissioned blockchain enables payments for institutional clients like large multinationals to transfer funds across JPM accounts globally. The advantage of the system is that it operates around the clock, unlike the traditional banking system, which is only available during business hours.
Moreover, multinationals can use the system to manage their liquidity, completing payments before they are due, said Toprak. The advantage of such efficiency means that corporate treasuries could earn interest on their deposits.
The announcement comes at a time global banks are exploring how to integrate blockchain technology into their operations. For financial institutions, transactions on a blockchain could speed up settlement securely. Last year, Goldman Sachs launched its digital-asset platform for clients to issue financial securities as digital assets. The Wall Street firm also created a data service with global index provider MSCI and Coin Metrics to classify digital coins for wholesale investors. The now-bankrupt Signature bank also operated a crypto-to-fiat digital network dubbed Signet.
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