A group of private banks in Argentina is running limited trials with JPMorgan’s JPM Coin to improve interbank settlement between participating institutions. Local reports say the deposit token is being tested as part of an effort to speed up settlement and reconciliation processes inside the banking system.
CMF, one of the banks involved in the pilot, said the project is part of the minimum viable product, or MVP, for JPM Coin in Argentina. Maximiliano Cohn, the bank’s CIO, told local media that the current operations are being carried out without real money. Traditional settlement methods remain in place for now, while blockchain-based technology is used for recordkeeping on-chain.
First phase centers on reconciliation and settlement times
Cohn said the initial phase is focused on integrating available services and checking whether connected banks can reduce settlement and interbank reconciliation times. He added that the concept is still in the design stage, with the stated goal of applying DLT, or distributed ledger technology, to cut costs and improve speed and operational efficiency.
The trial is aimed at internal banking infrastructure rather than customer-facing crypto products. At this stage, the banks are testing whether on-chain registration can modernize back-end processes before any wider rollout is considered. Analysts cited in the report described the move as an early step toward blockchain integration in banking.
2022 rule still blocks crypto services for bank clients
The pilot does not change the current regulatory position for customers. Banks in Argentina are still barred from offering crypto-based financial services because Communication A 7506, issued in 2022, says financial entities may not execute or facilitate transactions involving digital assets for clients unless those products have been authorized by a competent national regulator or by the Central Bank of the Argentine Republic.
According to the report, regulators are evaluating whether to lift that restriction. For now, the JPM Coin effort is limited to interbank settlement testing, leaving the customer side of crypto services dependent on any future change to the central bank’s rule.