TechFlow news, according to The Block, citing Bloomberg, JPMorgan Chase & Co. is in the early stages of exploring blockchain-based digital deposit tokens to accelerate cross-border payments and settlements.
Insiders said that the largest U.S. bank by assets has already developed most of the underlying infrastructure required to run the new payment system, but cannot launch the token unless the project receives approval from U.S. regulators.
The proposed digital token payment and settlement system could speed up transactions while reducing costs, with deposit tokens representing a digital version of customer deposits. They could be used to send funds to users at different banks or settle tokenized securities.
Sources said JPMorgan could roll out the project to corporate clients within a year after receiving regulatory approval.
