JPMorgan, the largest bank in the U.S. has set out plans to provide quick settlement for currency exchanges between the dollar and the euro. Over time, the bank intends to expand the service to include the pound sterling.
The settlement system will make use of the JPM Coin, built on JPMorgan‘s native blockchain called Kinexys that handles over $2 billion in transactions every day.
Currently, JPM coin enables participating institutions to make payments in dollars and euros. Although the project is one of the few instances of a large bank implementing a digital ledger on a broad scale, it only manages a small portion of the $10 trillion that JPMorgan moves every day.
The ability of JPM coin to do conversions between the dollar and the euro with immediate settlement is the next feature. The bank is also working on necessary approvals to add the pound sterling as a settlement option.
Depending on the currency combination, traditional foreign exchange settlement usually take anywhere from one to two days. However, this rapid settlement service will enable one of the largest payments facilitator in the world to attract new customers, including fintech firms.