The latest big move in crypto market news sees eight of the world’s leading lenders join the crypto space, as they seek to keep up with global firms moving their investments to the fintech market. 

These banks will build their own decentralised networks and coins in order to provide a secure and efficient means of money or value transfer to consumers. 

JP Morgan Chase was one of the first leading banks to make the step forward earlier this year, when it announced the launch of its own blockchain, Quorum. 

JP Morgan specified that Quorum was designed after Etherum, and was created with the aim of facilitating value transfers across various blockchain networks. 

Speaking at the EthCC Etherum dedicated conference in Paris in March 2018, former head of blockchain at JP Morgan Amber Baldet told the British “Express” periodical that the main goal for those working within the crypto community should be to tide over the relationship between blockchain and how it can be utilised in the banking industry. 

As the company awaits approval of the patent for its decentralised network, the US Patent and Trademark Office published their application on July 19, 2018, which highlights the method through which users of the network will be eligible to monetise their assets and exchange depository receipts. 

According to US Security and Exchange Commission (SEC) regulations, the receipts would be security tokens, therefore asset trading would subsequently be bound by SEC regulatory authority.

JP Morgan is only one of the many financial giants to dabble with decentralised application (DApp) technologies. Dutch lender Rabobank also announced its plans to launch its own crypto currency, Rabobit, as part of a troubleshooting initiative in their Moonshot program to create links between the crypto market and online banking.

Although the proposal was received with sufficient scepticism by the public, it still remains a positive leap forward towards solidifying the relationship between banking institutions and digital cash. 

The Financial Times also reported six other lending giants to seek opportunity in the blockchain industry: Barclays, Credit Suisse, Canadian Imperial Bank of Commerce, HSBC, MUFG and State Street.

These six banks have already joined forces to launch the “utility settlement coin” for the first time ever. Sources have reported that the digital currency will not compete against Bitcoin or other electronic cash giants dominating the market cap, be it will be the first to sufficiently aid banks in the development of blockchain networks, in order to ensure transparency and accuracy in financial transactions. 

The initiative was first introduced by Switzerland-based lender UBS, who specified that the new coinage would be focused on tackling concerns related to data privacy and cybersecurity. 

Hyder Jaffrey, UBS head of strategic investment and fintech, said in an interview with the Financial Times that “we have been in discussions with central banks and regulators, and we will continue that over the next 12 months with the aim of a limited ‘go live’ at the back end of 2018.”

As the number of investments being made within the crypto market continues to escalate, the shift of business from the banking sector to the realm of digital cash is just the first of many steps taken towards revolutionising payment networks, as global firms venture towards blockchain technology and the fintech space.