JPMorgan is working on a blockchain-based deposit token for use in cross-border transactions

According to reports, JPMorgan Chase, the biggest bank in the United States, is working on a token for use in cross-border transactions and settlements.

The biggest US bank, JPMorgan Chase & Co., is reportedly mulling the creation of a new digital currency that may speed up international payments and settlements, according to a source familiar with the matter quoted by Bloomberg.

The individual, who requested anonymity since the idea is still in its infancy, said that the bank is looking into the possibility of employing a deposit token built on the blockchain.

According to the same source, the financial institution has already built most of the infrastructure required to operate the new payment system, but it will wait to generate the token until it wins clearance from US authorities.

JPMorgan’s blockchain initiative, which now comprises a system called JPM Coin that enables certain of the bank’s institutional customers to move dollars and euros inside the bank, will be expanded to incorporate the deposit token.

Using distributed ledger technology (blockchain), which records and validates transactions without the need for a trusted third party, the deposit token will allow for immediate transactions. By cutting out middlemen like parallel banks and clearinghouses, the token might also lower transaction fees.

Also Read: A Brazilian Criminal Has Been Linked To The Crypto Money Laundering Activities Of A London Fintech CEO