The whispers of even the possibility of negative global interest rates (the infamous "NIRP") has sent a shiver down the spines of bank investors over the past month. JP Morgan is continuing to invest in technology such as blockchain to help stimulate new growth and profitability given the challenging macro environment for financial institutions. Over recent months, the bank has been testing blockchain technology to help move U.S. dollars for clients from London to Japan to give faster clearing and settlement times and help reduce risk.
J.P. Morgan Chase & Co. is quietly testing technology that underpins the digital currency bitcoin on U.S. dollar transfers between London and Tokyo, part of an effort to boost its spending to deal with emerging threats from Silicon Valley. The nation's largest bank has been testing the program in recent months to move U.S. dollars for about 2,200 clients between the two financial centers using a version of the "blockchain" technology that underpins bitcoin, said Daniel Pinto, head of J.P. Morgan's corporate and investment bank.