JPMorgan Chase digital treasury services and blockchain head Umar Farooq has reportedly told Bloomberg that the company’s JPM Coin digital currency will likely be pilot-tested with clients before the end of 2019. That prediction was made during an interview in which Farooq said that the company’s clients have expressed interest in the coin’s benefits for bond trading.
Much of that interest has apparently come from the company’s clients in the United States, Japan, and Europe. According to Farooq, those clients could benefit from instantaneous delivery of bonds and other securities, with transactions completed using blockchain technology. As Bloomberg noted in an article today:
The time savings could be significant. For now, it usually takes a seller of Japanese government bonds two days to electronically deliver them to the buyer in exchange for cash, said Shuichi Ohsaki, chief rates strategist at Bank of America Merrill Lynch in Tokyo.
Farooq indicated that the current timeline for client testing was tentative, since it would depend upon approval from regulators. If that approval is granted in the coming months, initial client tests could begin sometime before the end of the year. Regardless of when those tests start, however, he predicted that digital securities are going to become more commonplace in the future:
“We believe that a lot of securities over time, in five to 20 years, will increasingly become digital or get tokenized.”