Jamie Dimon, CEO of Global Bank Giant JPMorgan (JPM)said the bank plans to become more involved in stableecoins, even when he questioned their practical tools compared to traditional payments.
“We will be involved in both JPMorgan Depositcoin and StableCoins to understand it, to be good at it,” Dimon said under the bank’s Tuesday earnings call. “I think they’re real, but I don’t know why you want a stableecoin as opposed to just payment.”
His comments came as stableecoins, a subgroup of cryptocurrencies with awards linked to Fiat money like the US dollar, has a breakthrough moment in the wider financial system. They are increasingly used as a cheaper, faster alternative to cross -border payments, especially in new countries. The threatening US regulation provides a different tailwind to the sector, where the Senate has already passed the Genius Act and Parliament with the aim of voting on the proposal this week.
Read more: House Gears Up for Crypto Market Structure Vote Wednesday, StableCoins Thursday
Dimon has been a long time skeptic of cryptocurrencies. Despite this, the bank has been an early leader in tokenization with its private blockchain network Kinexys, formerly known as Onyx. The bank now runs $ 2 billion in transactions daily using JPM coin. Last month, it also piloted a deposit dock, JPMD, on Base Network, a blockchain built of coinbase running at Ethereum.
Dimon also suggested that financial technology companies, Fintech’s maps, use stablecoins and blockchain tools to canted into traditional banking. “These guys are very smart,” he said during the call. “They try to find out a way to create bank accounts and get in payment systems and reward programs.”
“We need to be aware of it,” he said. “Way to be aware is to get involved.”
For example, crypto-driven bank start offers Dakota cross-border dollar payments using stablecoins in backend and has collected $ 12.5 million to expand its services to over 100 countries, Coindesk reported.
