Jamie Dimon, CEO of JPMorgan Chase & Co. (NYSE:JPM), expressed his support for blockchain and stablecoin on Monday, stating that the banking giant is open to leveraging the technology to improve services for its clients.
Dimon Reiterates Blockchain Is ‘Real’
During an interview with Fox Business, Dimon said blockchain technology is “real” and is growing 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, cheaper for clients, we’re going to,” said the CEO of America’s largest bank.
See Also: Michael Saylor Claims Bitcoin Is Bigger Than Google And The US Navy Combined
The Need For ‘Guardrails’
Dimon emphasized the need for regulatory “guardrails” around these technologies, citing the bank’s adherence to 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 stated.
JPMorgan Opens Up To Crypto
JPMorgan rolled out a deposit token, JPM Coin, to its institutional clients last month. The token, which represents dollar deposits at the world’s largest bank, allows users to send and receive money via Coinbase‘s (NASDAQ:COIN) public blockchain Base.
The bank’s upcoming collateralization program, expected to go live by late 2025, will let institutional clients pledge Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) for secured loans
Will Dimon’s View On Bitcoin Change?
Dimon has recognized the utility of blockchain technology and stablecoins in the past, but continues to be very critical of Bitcoin.
Dimon believes that the leading asset lacks intrinsic value and is primarily utilized by criminals. He even suspected Bitcoin’s scarcity narrative, asking how the 21 million supply cap was determined.
Price Action: Shares of JPMorgan closed 0.05% higher at $315.21 during Monday’s regular trading session, according to data from Benzinga Pro.
JPM ranked moderately high on the momentum and growth metrics as of this writing. To check out how other banking stocks stack up, visit Benzinga Edge Stock Rankings for more details.
Photo Courtesy: lev radin on Shutterstock.com
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