American multinational investment bank and financial services company, JPMorgan Chase, will begin testing its pegged to the US dollar stablecoin "JPM Coin" with corporate clients, Bloomberg reports.
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The Head of JP Morgan’s blockchain development department, Umar Farooq, says the corporate clients would take part in testing technology aimed at "speeding up transactions, in particular, payments between companies and transactions with bonds."
Farooq highlights the technology behind stablecoin could enable instant delivery of bonds on a blockchain platform.
"We believe that a lot of securities over time, in five to 20 years, will increasingly become digital or get tokenized," Farooq added.
However, Brad Garlinghouse, CEO of cross-border payment giant Ripple, the company behind the XRP token, thinks that the JPM Coin lacks interoperability.
According to Ripple's CEO, the new stablecoin, which is supposed to be backed by the US dollar with a 1:1 ratio, lacks the necessary interoperability to become a major innovation in the industry, therefore, banks are very unlikely to adopt it for any real use.