JP Morgan is creating a Web3 digital identification system, which will most likely be based on the bank’s Onyx blockchain. Using a single digital identity, users would be able to “traverse across digital realms” such as Web3, DeFi, and the metaverse with the solution, which is currently in development.
JP Morgan is Developing a Web3 Digital ID Service to Grant Users Greater Control Over Their Digital Credentials.
JP Morgan has revealed that it is launching a digital identity service that enables users to “choose identity credentials you want to share throughout your online interactions, across the web3, the metaverse, DeFi, and beyond.” JP Morgan stated in a disclaimer that the solution is not a real product offering and there are no guarantees that the bank will introduce it.
The digital identity product is powered by JP Morgan’s Onyx, one of the first blockchain platforms headed by a bank that enables users to trade value, information, and digital assets. Since its introduction in December 2020 and through June 2022, the platform handled over $300 billion in short-term loans.
Now, the Wall Street behemoth is developing a web3 digital identity solution to provide users complete control over their digital credentials, allowing them to confirm their identity from anywhere and share “only what you want to share.” The purpose of JP Morgan is to let users to store, share, and view digital assets associated with a single digital identity.
“Imaging using only your credit score to take advantage of buy now pay later options without revealing all of your personal information. Prove ownership of your NFTs across platforms, and create content with freedom” while traveling between digital spaces in a trusted way, JP Morgan said.
TradFi Giants Contest Web3’s Decentralized Concept
JP Morgan’s increased focus on blockchain and web3 could be a watershed event for the cryptocurrency industry.
This is odd given that the concept of web3, also known as the “next iteration of the internet,” is centered on decentralization. Similarly, the fintech powerhouse Mastercard revealed intentions to launch a program enabling banks and financial institutions to offer cryptocurrency trading services to clients.
Some feel that the TradFi companies’ entrance into crypto undermines decentralization, which aims to eliminate the need for intermediaries. In September, the Brazilian bank Nubank reported that their crypto trading platform, which was introduced a few months prior, has 1.8 million members.
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