J.P. Morgan Chase shook the crypto and blockchain community as it applied for a patent to facilitate bank to bank payments on the blockchain.
Originally filed in October of last year, J.P. Morgan’s patent application was finally made public last Thursday by the U.S. Patent and Trademark Office. J.P. Morgan’s blockchain-powered payments system will be using the distributed ledger tech to monitor payments made between banks and other financial institutions.
According to the patent application, J.P. Morgan recognizes that the use of blockchain tech will address existing problems with the traditional cross-border payments system such as high costs, delays, and fund availability restrictions. In addition to that, payments made in the blockchain are all processed in real time and will have a clear audit trail.
J.P. Morgan CEO Jamie Dimon once made negative remarks towards bitcoin, citing that any employee of his caught trading bitcoin would be fired for “being stupid”. Given this, the patent application came as quite a shock to the crypto community.
However, Dimon was clear that he was only against cryptocurrencies and not blockchain tech, the underlying tech behind cryptocurrencies. In fact, the investment banking giant even has its own blockchain built on top of the Ethereum blockchain.
This is the second blockchain-related patent filed by J.P. Morgan. Their first one, filed in 2013, was reportedly rejected.