J.P. Morgan Chase is going to be the first major U.S. bank to create its own cryptocurrency - 'JPM Coin'
In trials are set to start in near future, a tiny fraction of the $6 trillion the bank lends to corporations will happen over 'JPM Coin' - the digital token made by engineers at the bank to instantly settle payments between clients.
The new cryptocurrency has a fixed value redeemable for one US dollar but it won't trade freely like bitcoin and many other.
JPM Coin is created to be used, at least initially, by major institutional customers, not individuals. Howerver, the Bank expects to roll it out to a broader range of customers later this year.
"
We have always believed in the potential of blockchain technology and we are supportive of cryptocurrencies as long as they are properly controlled and regulated,"
said the bank "
As a globally regulated bank, we believe we have a unique opportunity to develop the capability in a responsible way with the oversight of our regulators"