JPMorgan will develop blockchain-based token

The bank is poised to launch a new blockchain-based payment system - but must wait for the green light from U.S. regulators.

JPMorgan Chase & Co. wants to develop its own blockchain-based deposit token for bank transactions. This is stated in a rapport from Bloomberg, citing an anonymous source.

According to the report, the US bank has already built most of the technical infrastructure needed to do this. JPMorgan wants the token develop, however, only when U.S. regulators give the green light.

Once there is regulatory clarity, the new payment system could be available to the bank's institutional customers within a year.

Deposit tokens are a digital version of customers' deposits with a bank. Transactions via deposit tokens are processed on the blockchain and can increase speed while reducing transaction costs.

"Deposit tokens bring many potential benefits, but we also understand that regulators will want to be thoughtful and careful before developing and using a new product," said a JPMorgan spokesperson, according to Bloomberg. "Should this need arise, our blockchain infrastructure would be able to deploy deposit tokens relatively quickly."

JPMorgan is the largest bank in the US. It processes daily payments worth ten trillion US dollars.