Jamie DimonCEO of JPMorgan Chase & Co. (NYSE:JPM)on Monday expressed its support for blockchain and stablecoin, saying the banking giant is ready to leverage the technology to improve services to its customers.
Dimon reiterates that blockchain is “real”
In an interview with Fox Business, Dimon said blockchain technology is “real” and is becoming more “efficient” and “effective” as people find it faster and cheaper.
Smart contracts would probably be real. We are working on a stablecoin,” Dimon said. “We are going to do the same thing, in tokenization.”
“As a payment system, a network, if we can use things like that to do something better, faster and cheaper for customers, we will,” said the CEO of the largest US bank.
See also: Michael Saylor says Bitcoin is bigger than Google and the US Navy combined
The need for “guardrails”
Dimon stressed the need for regulatory “guardrails” around these technologies, citing the bank’s compliance with rules, regulations, pricing, anti-money laundering, know-your-customer and regular government oversight.
“I hope they come up with rules and regulations that make it a rational, usable, fair product,” Dimon said.
JPMorgan opens up to crypto
JPMorgan rolled out a deposit token, JPM part, to its institutional clients last month. The token, which represents dollar deposits with the world’s largest bank, allows users to send and receive money via Coinbase(NASDAQ:COIN) public blockchain Base.
The bank’s next guarantee program, which is expected to be operational by the end of 2025, will allow institutional clients to commit Bitcoin (CRYPTO:BTC) And Ethereum (CRYPTO: ETH) for guaranteed loans
Will Dimon’s View on Bitcoin Change?
Dimon has acknowledged the usefulness of blockchain technology and stablecoins in the past, but continues to be highly critical of Bitcoin.
Dimon believes that the primary asset lacks intrinsic value and is primarily used by criminals. He even suspected the Bitcoin scarcity narrative, asking how the 21 million supply cap was determined.
Price action: Shares of JPMorgan closed up 0.05% at $315.21 during Monday’s regular trading session, according to data from Benzinga Pro.
JPM ranked moderately high in momentum and growth as of this writing. To see how other bank stocks compare, visit Benzinga Edge Stock Rankings for more details.
Photo courtesy: Lev Radin on Shutterstock.com
Read next:
