JPMorgan Chase & Co., the largest bank in the United States, is reportedly exploring the creation of a novel digital currency aimed at expediting international payments and settlements, according to sources familiar with the matter.

While the project is in its early stages, the insiders, who chose to remain anonymous, disclosed that the bank is exploring the utilization of a blockchain-based deposit token.

This digital currency would function as a transferable representation of a deposit claim held by the bank.

It’s worth noting that JPMorgan has already laid much of the groundwork required to implement this innovative payment system.

However, the actual creation of the deposit token is contingent upon receiving regulatory approval from relevant U.S. authorities.

This venture into deposit tokens is a continuation of JPMorgan’s efforts in the blockchain space. Notably, the bank previously introduced “JPM Coin,” a digital currency enabling certain institutional clients to facilitate seamless transfers of dollars and euros within the bank’s ecosystem.

Since its launch in 2019, JPM Coin has been employed to process an estimated $300 billion in transactions, showcasing its utility and adoption.

The introduction of the deposit token is poised to revolutionize international transactions, leveraging the capabilities of blockchain technology.

Blockchain, a distributed ledger technology, records and validates transactions without the need for intermediaries. As a result, this new digital currency has the potential to significantly reduce transaction costs by eliminating intermediaries such as counterpart banks and clearinghouses.