Traditional banks are rushing to layout stable coins. JP Morgan CEO Damon: Must actively participate in encrypted payment technology.
Damon expresses that J.P. Morgan must actively participate in the stablecoin business.
In the current rapid development of encrypted payment technology, even traditional financial giants have to get involved. Jamie Dimon, CEO of the largest bank in the United States, JPMorgan Chase (JPM.US), said in a earnings conference call that although he personally does not understand the appeal of stablecoins, JPMorgan Chase cannot stand by and must actively participate.
"We will get involved in JPMorgan Chase's deposit coins and stablecoin business, this is to understand it, and to master it," Dimon said. "I think stablecoins are a real existence, but I do not understand why stablecoins should be used instead of traditional payment methods directly."
Stablecoins are a type of cryptocurrency that is pegged to a legal tender currency and designed to maintain a stable value. Although Dimon has always been skeptical of cryptocurrencies such as Bitcoin, as a major participant in the global payment system, JPMorgan Chase processes transactions totaling nearly $100 trillion every day. Against the backdrop of stablecoins and digital payments becoming a mainstream trend, JPMorgan Chase must take action.
Last month, JPMorgan Chase announced that it will launch a "limited purpose" stablecoin, only for use between its institutional clients, not for the public. This difference in the acceptable range of a "true stablecoin" reflects the bank's cautious strategy.
Not only JPMorgan Chase, but also Citigroup and Bank of America Corp (BAC.US) are also researching stablecoin-related businesses. Citigroup executives said in a earnings call on Tuesday that the bank is exploring the possibility of issuing "Citi stablecoin" and is optimistic about the prospects of tokenized deposits and cryptocurrency custody services. In response to this news, Citigroup (C.US) stock rose by 3.68% on Tuesday.
Brian Moynihan, CEO of Bank of America Corp, had also previously stated that the bank may explore the stablecoin field in the future.
Stablecoins are seen as a potential alternative to traditional bank payment channels (such as ACH and SWIFT), which have been criticized for their outdated technology and long settlement times. If stablecoins can achieve faster and cheaper cross-border payments within a compliant framework, they will have a profound impact on the financial industry ecosystem.
Dimon admitted that traditional banks must be vigilant in the face of Fintech companies' "penetrative restructuring" of banking operations. He pointed out, "These tech companies are very smart, they are trying to create bank-like accounts, enter the payment system and loyalty rewards mechanism fields. We must remain vigilant, and the best way is to participate personally."
He also mentioned that the future of the banking industry may involve collaborating on stablecoin solutions through a model similar to "Zelle". Zelle is an instant payment tool jointly launched by multiple banks in the United States to compete against emerging payment platforms such as PayPal and Cash App under Square.
When asked if there are plans for banks to collaborate on launching a unified platform for stablecoins, Dimon did not give a direct answer: "That's a good question, we will keep the answer to that question for now. You can assume that we are considering all possibilities."
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CONTIOCEAN (02613) intends to apply for the termination of the listing of the company's stock on the national small and medium-sized enterprise stock transfer system.

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