After JPMorgan Chase, two more U.S. banks want to issue coins

According to Bloomberg, digital currency technology provider IBM (International Business Machines Corp.) said that at least two "major U.S. banks" are considering whether to follow JPMorgan Chase & Co.'s lead in issuing digital currencies.

Jesse Lund, IBM's vice president of blockchain business, said that the company has had preliminary discussions with two banks about issuing so-called "stable coins." "Stablecoin" is a digital currency that is linked to currencies such as the U.S. dollar at a 1:1 exchange rate. In February this year, JPMorgan, the largest bank in the United States by assets, announced that it would issue JPM Coin, a digital currency pegged to the U.S. dollar.

According to Lund, the two American banks contacted JPMorgan Chase after they announced that they would issue coins and expressed interest in issuing coins. But Lund declined to name the two banks.

Digital currency can allow funds to be transferred instantly between institutional accounts and shorten settlement time, making it easier for funds to circulate internationally. JPMorgan Chase said it will use its own blockchain to speed up payments for corporate customers.

IBM said that in addition to U.S. banks, it is also working with six non-U.S. companies on digital currencies. Among them are South Korea's Busan Bank, a unit of BNK Financial Group Inc., and Philippines' Rizal Commercial Banking Corp., which is expected to issue stable bonds in the second quarter, Lund said. The banks are currently awaiting regulatory approval, he said.

Digital currencies issued by international banks can run on the blockchain global network launched by IBM on Monday, and the digital currencies can be used to settle transactions between customers of different banks. Lund said that by lending digital currencies, banks can earn interest income and charge transaction fees.

He said: "For banks, this is a new revenue opportunity, and banks are now starting to pay attention." ”

Stablecoins have become popular over the past year as cryptocurrency prices plummeted, prompting traders to look for safer alternatives. This has led to the rise of the king of stablecoins, Tether, and the launch of a range of other stablecoin products for retail and corporate users.

(Source: Lian Finance)