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global payments

JPM Coin System

JPM Coin System is a permissioned blockchain system that functions as a payment rail and deposit account ledger, allowing participating J.P. Morgan clients to transfer funds held on deposit with J.P. Morgan within the JPM Coin System. 

The JPM Coin System removes traditional treasury friction points and is ideal for managing real-time liquidity through cross-border payments beyond currency cut-off or non-banking hours, such as on banking holidays and weekends.

The traditional payment rails versus the Coin Systems ecosystem.
Tip
  • All JPM Coin System use cases, including those presented on this page, are subject to J.P. Morgan review. 
  • In reference to 24/7 real-time payments over the weekend, payments on the JPM Coin System are completed on a 24/7/365, same-day basis. Note that moving funds between systems (e.g., to and from the JPM Coin System and a traditional DDA on legacy systems) has a three-hour downtime over the weekend (3-6 PM EST every Saturday, enhancement under development).
  • In addition to regular Demand Deposit Accounts (DDA), select Client Money Accounts (CMA) and Mortgage Servicing Accounts (MSA) may be supported by this product, subject to J.P. Morgan review.
  • BDA balances are in fiat currency.

Benefits

With JPM Coin System, you can:

  • Avoid prefunding with 24/7 real-time payments: Move funds on banking holidays, fund shortfalls, working capital gaps, and other ad hoc transfers. 
  • Cross-border payments: Unlock working capital globally with cross-border payments and enable new business models, for example, machine-to-machine payments.
  • Real-time visibility: View transactions and balances in real-time to ensure transparency and finality of payment.
  • Advance payment type support: Use Delivery versus Payment (DvP), Payment versus Payment (PvP), and machine-to-machine payment types.

The JPM Coin System uses Blockchain Deposit Accounts (BDA), which operate and function as traditional Demand Deposit Accounts (DDA). BDAs enable the initiation and real-time settlement of a payment. Payments can be made to/from a DDA, Mortgage Servicing Account (MSA), or Client Money Account (CMA) at any funding location as listed in the Availability section. 

When to use JPM Coin System

Intra-company payments

Intra-company payments

Optimize and mobilize your liquidity among connected entities by moving funds domestically or cross-border 24/7/365, including on holidays.
Inter-Company Payments

Inter-company payments

Speed up commercial settlement and align treasury processes to the real-time nature of the industry by moving funds domestically or cross-border any day and time of the week including on holidays.
Merchant Acquirers and Beneficiaries

Merchant acquirers and beneficiaries

Pay acquirers 24/7, and settle funds with certainty on-demand, multiple times a day and minimize need for prefunding and credit lines.
Unlock idle working capital and liquidity

Unlock idle working capital and liquidity

Efficiently leverage your existing liquidity by automatically moving funds cross-border in a “follow the sun” model to draw on liquidity as needed.
USD offshore Clearing for FIs

USD offshore Clearing for financial institutions

Instantaneously settle and clear USD minimizing the need to prefund or use of credit lines on nostro accounts for financial institutions at J.P. Morgan.
Event Driven Payments

Event driven payments

Automated real time treasury through the use of Programmable Payments using an intuitive ‘if-this-then-that’ web interface.

How to use JPM Coin System

Clients can use the JPM Coin System to settle domestic and cross-border payments. The JPM Coin System can facilitate highly efficient intra-company fund flows (moving liquidity within a group) and inter-company fund flows (transacting with counterparties) through the use of two transaction types:

  • Deposit - Customers must first fund their Blockchain Deposit Account (BDA) from a linked Demand Deposit Account (DDA) owned by J.P. Morgan. A linked DDA is an authorized DDA as identified during the Blockchain Deposit Account onboarding that is allowed to fund that specific Blockchain Deposit Account.
  • Payment - Customers can initiate payments from their BDA to holders of a BDA or DDA.
The JPM Coin System mechanism.

Intra-company fund flow

An intra-company fund flow is a domestic or cross-border payment made between two entities belonging to the same parent group. The JPM Coin System can facilitate this intra-company fund flow which may require each entity to have a Blockchain Deposit Account. The following diagram outlines the end-to-end flow of events for a client who seeks to move funds intra-company between Entity A and Entity B.

Flow of events for intra-company payments

Inter-company fund flow

An inter-company fund flow is a domestic or cross-border payment made between two counterparties. The JPM Coin System can facilitate a payment between Blockchain Deposit Accounts (BDA) or directly to a Demand Deposit Account (DDA). The following diagram outlines the end-to-end flow of events for a client who seeks to pay two counterparties, Counterparty A has a J.P. Morgan BDA and Counterparty B has a J.P. Morgan DDA.

The JPM Coin Systems inter-company fund flow use case.

Availability

Customers can open a Blockchain Deposit Account (BDA) at J.P. Morgan to support JPM Coin System payments to and from the following markets on the Global Payments API:

JPM Coin System market availability

Regions

Market/Scheme

North America (WHEM)

United States

Europe, Middle East, and Africa (EMEA)
  • Luxembourg
  • London
  • Frankfurt
  • Dublin
  • Amsterdam

Asia-Pacific (APAC)
  • Hong Kong
  • Singapore
  • Sydney
Tip

BDAs can be funded from available branches as approved by JPM; however, the BDA booking location will be NY for J.P. Morgan Chase Bank, N.A. clients. 

Next steps