JP Morgan Chase has begun commercially testing its digital currency, JPM Coin, for use in cross-border payments by a large technology client. In beginning the testing phase, JPMorgan also decided to create a new business to house its blockchain and digital currency efforts called Onyx, according to a report by CNBC.
“We are launching Onyx because we believe we are shifting to a period of commercialization of those technologies, moving from research and development to something that can become a real business,” Takis Georgakopoulos, Global Head of Wholesale Payments, JPMorgan Chase told the news outlet.
Blockchain has attracted billions of investment dollars but has not produced a lot in the way of results yet. JPMorgan’s move could encourage greater interest in digital currencies. Cryptocurrencies enjoyed a great deal of attention lately when PayPal announced that users could soon buy, hold and sell crypto directly from their PayPal accounts.
JPMorgan is focused for now on relieving pain points in the world of wholesale payments, especially in cross-border payments. The goal would be to have banks confirm payments have the proper account information and regulatory format before they are sent, preventing expensive rejections.