JP Morgan is developing a Web3 digital identity solution, likely built on the bank’s Onyx blockchain. The solution, which is currently under development, would allow users to “traverse across digital realms” like Web3, DeFi, and the metaverse using a single digital identity.
JP Morgan Working on a Web3 Digital ID Offering to Give Users More Control Over Digital Credentials
Banking giant JP Morgan announced it is developing a digital identity offering empowering users to “choose identity credentials you want to share throughout your interactions online, across the web3, the metaverse, DeFi, and beyond.” The solution is not a live product offering and there are no guarantees the bank will launch it, JP Morgan said in a disclaimer.
The digital identity offering is powered by JP Morgan’s Onyx, one the first bank-led blockchain platforms allowing users to trade value, information, and digital assets. The platform processed more than $300 billion in short-term loans since its launch in December 2020 through June 2022.
Now, the Wall Street giant is working on a web3 digital identity solution to provide users with total control over their digital credentials, allowing them to prove who they are from anywhere and letting them share “only what you want to share.” JP Morgan’s goal is to enable users to store, share, and view digital assets bound to 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 in the explainer video.
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TradFi Giants Challenge Web3’s Idea of Decentralization
JP Morgan’s deeper push into blockchain and web3 could turn into a landmark moment for the crypto realm.
This marks an ironic twist given that the idea of web3, commonly referred to as the “next iteration of the internet,” is focused on decentralization. Similarly, fintech behemoth Mastercard announced plans to roll out a project allowing banks and financial institutions to offer crypto trading services to clients.
Some believe that the TradFi giants’ foray into crypto is challenging the idea of decentralization, which aims to remove the need for middlemen. In September, Brazilian bank Nubank said that 1.8 million users are using its crypto trading platform launched a few months ago.
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About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.