Per the report, euro payments went live on Wednesday, with the Germany-based industrial manufacturing giant Siemens making the first payment using the European fiat currency.
The move comes several months after JPMorgan first hinted at enabling blockchain euro-denominated payments via JPM Coin. The platform already allows US dollar-denominated transactions.
JPM Coin Benefits
Over the past decade or so, numerous banks and financial institutions shave been making efforts to leverage blockchain technology for increased operational efficiency, however, commercial applications of such initiatives have been largely limited, and widespread benefits have remained elusive.
On the other hand, JPMorgan’s JPM Coin represents a rare example of a successful, live blockchain application launched by a large traditional bank, even though it plays a very minor role in its payments business.
Through JPM Coin, the bank’s wholesale clients are able to make dollar and euro transfers to and from their multiple JPMorgan accounts or transact with other customers of the bank. In addition, clients can make blockchain-enabled payments using JPM Coin around the clock, compared to traditional money transfers that are usually processed only during business hours. JPM Coin transactions are also executed quicker than traditional payments.
Apart from JPMorgan, several other traditional banking giants are also doubling down on their blockchain and digital asset-related initiatives. In January, Goldman Sachs (NYSE: GS) launched its own blockchain platform, allowing clients to issue financial securities in the form of digital assets like real estate.