J.P.Morgan, which has a $2.6 trillion balance sheet, became the first U.S. bank to create a digital currency representing a fiat currency. The JPM Coin is based on blockchain technology that allows the instantaneous transfer of payments between institutional accounts. 1 JPM Coin will represent $1. J.P.Morgan clients will be able to convert U.S. Dollars into JPM Coins, transfer them over the blockchain, and then redeem the coins 1:1 back into U.S. Dollars. The benefits, J.P.Morgan states, are reduced counterparty and settlement risk, reduced capital requirements, and instantaneous transfer of value. J.P.Morgan will test the technology with some institutional clients and plans to expand the pilot program later in 2019. The involvement of a respected industry leader is certainly a positive development for the digital currency industry.