JPM Coin surpasses $1 billion in daily transactions

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JPM Coin surpasses $1 billion in daily transactions
Credit: © Reuters.

NEW YORK - JPMorgan Chase (NYSE: JPM )'s corporate stable coin, JPM Coin, has reportedly achieved a significant milestone with its transaction volumes exceeding $1 billion daily. This surge reflects the growing adoption of blockchain technology by major corporations for a variety of financial operations.

JPM Coin operates on a private Ethereum blockchain, providing a secure and efficient platform for 24/7 transactions and smart contracts. The increased transaction volume highlights a shift from blockchain's earlier use as primarily a tool for one-off transactions to its current role as an integral part of daily commercial activities.

Corporations such as Siemens, Cargill, and FedEx (NYSE: FDX ) are leveraging JPM Coin for managing commercial deposits and implementing programmable money applications. These applications include anytime blockchain-enabled cash sweeps, smart contracts for securities margin calls, and staggered shipping payments release. Naveen Mallela from JPMorgan Chase's Onyx unit emphasized that customers now view JPM Coin not just as a stablecoin but as a versatile tool for managing funds and harnessing the benefits of programmable money.

Programmable money is gaining traction in the investment sector as well. JPMorgan and Apollo have launched tokenized funds in Singapore, while in the United States, Superstate has raised $14 million to initiate similar ventures. Superstate was founded by the creator of the DeFi protocol Compound.

The trend towards embracing blockchain-based finance is not limited to the United States. In Thailand, Binance and Gulf Energy are setting up a new cryptocurrency exchange. Additionally, Paxos is preparing to introduce a USD-pegged stablecoin in Singapore after receiving approval from the Monetary Authority.

While these developments indicate an increasing move towards mainstream adoption of blockchain finance, the regulatory landscape remains cautious. The U.S. Securities and Exchange Commission (SEC) has postponed decisions on two more cryptocurrency ETF applications, signaling ongoing deliberation over the integration of crypto assets into traditional financial markets.

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