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Blockchain, Cryptocurrency News

JPM’s crypto venture adds new privacy features

29 May 2019 : 15:57
2 min read

J.P.Morgan, the world’s largest investment bank, launched a pilot in 2017 for their newly
developed Interbank Information Network (IIN) in order to leverage blockchain technology for
fast and secure information transfer between banks. The network runs on the Ethereum-based
protocol Quorum, that was also developed by J.P.Morgan with enterprise needs in mind. Over
200 banks have joined the network so far.

In February 2019, J.P.Morgan announced that they have created their own digital asset: JPM
Coin. The coin, created to equate to 1 USD at all times, will be used to facilitate instant
payments between institutional accounts. The asset will not be accessible to the public, and all
institutional clients that are looking to use it, after official deployment, will need to pass the
J.P.Morgan KYC.

Currently, a privacy feature will be added using a new Zether -based extension. Zether is a fully
decentralised payment mechanism. The latter normally uses zero-knowledge (ZK) proofs to
conceal account balances and transfer accounts, but the new anonymous extension was added
to hide participants’ identities.

Most privacy coins might be suffering from regulations as they can be used for illicit activities.
For example, Japan’s Financial Services Agency (FSA) was considering banning exchanges
from listing privacy coins altogether. However, unlike these, the privacy feature is only
accessible to participants that have already passed the J.P.Morgan KYC.

Image licensed via Shutterstock

About Author

Karim Abuzeineh

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Co-Founder of Cryptonary Karim has entered the crypto industry in 2017, went through the ups and downs of the market and dedicated himself to increase his skillset and knowledge in both Fundamental & Technical analysis through the bear cycle. He is bullish.

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