US investment bank JP Morgan has created a crypto-currency to help settle payments between clients in its wholesale payments business, a new development of cryptocurrency in the US.
JPM Coin is the first digital currency to be backed by a major US bank, as of writing.
The crypto-currency, which runs on blockchain technology, has been used successfully to move money between the bank and a client account.
The firm says it sees potential in using digital coins to reduce risk and enable instant transfers.
Although JP Morgan’s chief executive Jamie Dimon has publicly criticized Bitcoin – the first crypto-currency in existence – on several occasions, the bank says it has always “believed in the potential of blockchain technology”.
“We are supportive of crypto-currencies as long as they are properly controlled and regulated,” Umar Farooq, JP Morgan’s head of Digital Treasury Services and Blockchain, wrote in an online platform.