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JPMorgan sets up blockchain unit as JPM Coin gets commercial outing

With its JPM Coin digital currency now being used by a client commercially, JPMorgan Chase has created a new unit to house its blockchain and crypto efforts.

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JPMorgan sets up blockchain unit as JPM Coin gets commercial outing

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JPMorgan Chase created the JPM Coin digital token last year to enable the instant settlement of transactions between the bank's wholesale payments business clients.

This week, a large technology firm has become the first client to use the coin commercially, the bank's global head of wholesale payments, Takis Georgakopoulos, tells CNBC.

Meanwhile, a new unit, called Onyx, has been created to house more than 100 staffers working on the bank's various blockchain and digital currency projects.

The decision represents a belief at JPMorgan Chase that "we are shifting to a period of commercialization of those technologies, moving from research and development to something that can become a real business," says Georgakopoulos.

The bank is focusing on removing pain points in wholesale payments, simplifying a system which relies on a complex global web of correspondent banks. Another area ripe for disruption is the processing of paper cheques, Georgakopoulos tells CNBC.

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