JPMorgan has been looking to embrace disruptive trends as traditional banking is challenged by emerging technologies and evolving business models. Despite being an established bank, the financial giant has never shied away from diversifying and experimenting with modern technology, which can be seen in their innovation and investment strategy. In 2015, Wall Street banks first tried to get involved in the blockchain industry. JPMorgan Chase cooperated with eight banks including Barclays and BBVA to form an alliance led by R3. In this article, we explore JPMorgan’s presence in these areas by covering topics such as blockchain, cryptocurrencies, NFTs, and the Metaverse.
2015-2019: The cryptocurrency boom
JPMorgan’s ties to blockchain date back to February 2016, when the bank began experimenting with blockchain technology underpinning bitcoin by leveraging the digital asset holding company. The following year, they launched their own blockchain platform , Quorum , hoping to explore potential ways DLT (distributed ledger technology) could help speed up their transactions. However, the bank’s partnership with the alliance was short-lived — JPMorgan parted ways with R3 the following year to pursue a separate technology path. The launch of the Interbank Information Network (IIN)– a Quorum-based blockchain network to enhance New Interbank Payments Platform for Customer Experience – Proof of the banking giant’s love of blockchain. In 2018, JPMorgan Chase launched Dromaius , a prototype designed to test the use of the Ethereum blockchain technology. Additionally, the Wall Street bank became a strategic investor in enterprise blockchain startup Axoni through its $32 million Series B investment . In 2019, to facilitate transactions between institutional clients, JPMorgan Chase launched JPM Coin , a digital token representing fiat currency that uses blockchain technology for payment transfers. That same year, JPMorgan partnered with Microsoft to become the first to use Azure Blockchain Services — enabling customers from both platforms to build and scale blockchain networks in the cloud.
2020: Unlocking innovation
Still, JPMorgan’s crypto plans aren’t limited to stablecoins. In 2020, the banking giant is discussing merging its Quorum blockchain with Ethereum-based blockchain startup ConsenSys . Around the same time, JPMorgan also began offering cash management services and agreed to process U.S. dollar transactions for Coinbase and Gemini ‘s U.S. clients. The following months have seen some key events in JPMorgan’s crypto journey. The banking giant sold its blockchain Quorum to ConsenSys. On October 27, 2020, JPMorgan Chase first saw its JPM Coin commercialized for global payments by a major tech client. Within 24 hours of the event, the banking firm launched their second blockchain, Onyx , designed to capture the major shift in the financial services industry towards digital currencies.
2021: Embrace cryptoeconomics
JPMorgan was eager to jump on the cryptocurrency bandwagon when it launched a cryptocurrency exposure basket of company stocks invested in bitcoin in March 2021. In addition, JPMorgan has invested in blockchain companies ConsenSys and HQLAx , as well as Blockdaemon , the world’s largest blockchain infrastructure company . The banking giant’s ambitions to revolutionize payments using blockchain technology didn’t stop there. JPMorgan, together with DBS Bankand Temasek , created Partior , a joint venture aimed at developing a blockchain-based wholesale payments network for cross-border transactions. In a key move to digitize trading activity, Goldman Sachs launched JPM Coin’s digitized treasury bond trading on JPMorgan’s Onyx blockchain platform. Despite criticizing bitcoin and discouraging people from investing in it, JPMorgan itself was one of the first major U.S. banks to offer bitcoin and other cryptocurrency funds to its wealth management clients. The following month, they launched another bitcoin fund created by crypto firm NYDIG , allowing financial advisors to start including private banking clients. Towards the end of the year, JPMorgan hosted its inaugural “TradFi Investor Cryptoeconomic Forum” event at the bank’s New York headquarters, where it distributed NFTs minted on Ethereum’s layer 2 network , Polygon .
2022: Entering the Metaverse
2022 seems to have started quite positively for the banking giant. The Central Bank of Bahrain completed a test of the JPM Coin using Onyx, allowing Bank ABC to launch real-time payments for Bahrain Aluminium (ALBA) in the US. What’s more, the banking giant is also making inroads into the virtual world with the launch of the Onyx lounge in Decentraland, complete with a paper explaining how businesses can find new opportunities in the virtual world. JPMorgan, Toshiba andCiena joined the platform, recognizing the security threats facing blockchain networks , successfully testing new encrypted networks that can be used to secure blockchain communications, and investing in blockchain intelligence firmTRM Labs . This further shows that while cryptocurrencies were initially viewed with suspicion and contempt by JPMorgan’s leadership, that didn’t stop the company from embracing the technology behind it and evolving according to market demands; Money and other web3 trends drive the continued evolution of the banking industry.
Needless to say, the Wall Street bank’s experimentation with the technology behind cryptocurrencies is a welcome change, and the many giant leaps the banking giant is taking to enter the next phase of the decentralized world has already caught the attention of all walks of life . What new business the company will pursue next, only time will tell.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/jpmorgans-blockchain-web3-and-metaverse-layout/
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