Even JP Morgan's own chief executive Jamie Dimon, who has consistently said blockchain holds promise, rejected bitcoin as a "fraud" when speaking at a conference in September, adding: "It's just not a real thing, eventually it will be closed".
In an announcement on its website, it said that "J.P. Morgan this month became the first USA bank to create and successfully test a digital coin representing a fiat currency".
"As a globally regulated bank, we believe we have a unique opportunity to develop the capability in a responsible way with the oversight of our regulators", said JPMorgan's Head of digital treasury services and blockchain Umar Farooq.
It is worth noting that JP Morgan previously imposed a ban on cryptocurrency purchases via bank accounts.
JPM Coin, on the other hand, is "permissioned (i.e., enterprise grade secure blockchain solutions built by J.P. Morgan and/or partners)", the FAQ says (emphasis added here).
For more on J.P. Morgan's cryptocurrency, follow on over to CNBC.
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For some, J.P. Morgan's new currency may come as an unexpected development for a technology that rose from the wreckage of the financial crisis and was supposed to disrupt the established banking world. CNBC first reported JPM Coin.
Dimon said that he supported blockchain technology for tracking payments, his company would fire anyone at the bank that traded in bitcoin "in a second".
"The applications are frankly quite endless; anything where you have a distributed ledger which involves corporations or institutions can use this", he said in an interview February 14.
In short, a JPM Coin will have a fixed value redeemable for one US dollar.
In an attempt to reposition itself after Jamie Dimon's past controversial comments, Farooq tries to convince us this is part of the master plan: "We have always believed in the potential of blockchain technology and we are supportive of cryptocurrencies as long as they are properly controlled and regulated". These now rely on wire transfers and use decades-old networks like Swift which have cut-off times for transactions in different countries.
"When one client sends money to another over the blockchain, JPM Coins are transferred and instantaneously redeemed for the equivalents amount of USA dollars, reducing the typical settlement time", the company added.
It will also be used for the bank's treasury service business, eradicating the need to hold dollars in global subsidiaries. The company plans to make the coin operable on all standard blockchain networks. Farooq continued that: "Is there a way to ensure that a subsidiary can represent cash on the balance sheet without having to actually wire it to the unit?" As such, once after the clients used it, the bank would destroy the coins and return "commensurate number of dollars" to clients. That way, they can consolidate their money and probably get better rates for it."Pretty much every big corporation is our client, and most of the major banks in the world are, too", he concluded".