JPMorgan Chase on Thursday unveiled a prototype for a digital coin system using blockchain.
The system, called JPM Coin and which for now is only at the prototype stage, would permit institutional clients to make instantaneous payments with other bank clients.
Customers would receive JPM Coins that could be transferred to other customers, who are then free to redeem the sum. The system is based on US dollars but could be expanded to other currencies, the largest U.S. bank by assets said.
JPM Coin employs the digital ledger technology known as blockchain and is being tested with a small number of institutional clients, with plans to be expanded into a pilot program later this year, the company said on its website.
JPMorgan said its new coin will be issued on its in-house blockchain technology Quorum. The system is designed for business-to-business transactions and not for individuals at this point.
The company plans to make the coin operable on all standard blockchain networks.