The Blockchain Center of Excellence leads efforts for Distributed Ledger Technology applications, actively researching blockchain use cases to develop in-house technology and pilot solutions across lines of business within J.P. Morgan. Connecting leading technologists, the program aims to actualize enterprise-grade blockchain tools, such as JPM Coin, Interbank Information Network® (IIN) and Quorum®, to drive industry standards and deliver value to clients. The program also manages strategic relationships and investments with key vendors and consortia, including Enterprise Ethereum Alliance, The Initiative for CryptoCurrencies & Contracts, Global Blockchain Business Council and Hyperledger, a Linux Foundation Project.
In 2019, J.P. Morgan created and successfully tested a digital coin representing a fiat currency. JPM Coin is a digital coin representing United States Dollars designed to facilitate instantaneous payments between institutional clients, which may reduce typical settlement time. Over time, we anticipate JPM Coin will be extended to other major currencies, subject to market demand. The product and technology capabilities are currency agnostic and will be operable on many standard blockchain networks. JPM Coin is currently a prototype1.
Launched in 2018, J.P. Morgan’s Interbank Information Network (IIN) is the firm’s first scalable, peer-to-peer network powered by blockchain technology. IIN serves to address the longstanding challenges of interbank information sharing, minimizing friction in the cross-border payments process to enabling payments to reach beneficiaries faster and with fewer steps. IIN allows member banks to exchange information necessary for the completion of payments in real-time. More than 300 banks have signed letters of intent to participate in IIN, using this new technology to facilitate global cross-border payments in every major market, including Latin America, Asia, Europe, the Middle East and Africa.
In April 2018, J.P. Morgan successfully tested a parallel simulation of a $150 million Yankee CD with Dromaius, a digital securities platform prototype that was used to conduct proofs of concept to simulate financial transactions. Dromaius is designed to incorporate functions across the entire debt instrument transaction lifecycle, including origination, distribution, execution, settlement, interest rate payments and maturity repayments. Streamlining the issuance and trading of securities enables a new level of investor and issuer connectivity while potentially improving access to capital in less liquid markets.
Open-sourced in 2016, Quorum is a J.P. Morgan built blockchain platform based on Ethereum protocol. Quorum is designed for processing transactions within a permissioned network which solves for privacy and performance challenges. It is currently being used for multiple initiatives within J.P. Morgan and by outside financial firms and vendors.
For more information on J.P. Morgan's Blockchain Center of Excellence, please email us.
1J.P. Morgan will complete all internal procedures and satisfy all regulatory and compliance obligations, prior to any live products or services being launched utilizing JPM Coin.