According to Bloomberg's report, a person with knowledge on the subject said that the largest US bank, JPMorgan Chase & Co., is considering launching a new type of digital currency that can accelerate international payments and settlements.
The person, who did not want to be identified as the project is still in its early stages, said the bank is investigating using a blockchain-based deposit token that would act as a transferable digital currency that represents a deposit claim against it.
The source added that the bank has developed much of the infrastructure needed to run the new payment system, but will not create the token unless it receives approval from US regulators.
The deposit token will be an expansion of JPMorgan's blockchain push, which includes a system called JPM Coin that allows some of its institutional clients to transfer dollars and euros within the bank.
The bank said in June that it had processed approximately $300 billion in transactions using JPM Coin since its launch in 2019.
The deposit token will enable instant transactions using blockchain technology, a distributed ledger technology that records and verifies transactions without intermediaries. The token will also potentially reduce transaction costs as it will eliminate the need for intermediaries such as counterpart banks and clearinghouses.
*This is not investment advice.
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XRP is JP Morgan