Chase just entered the space race!
JPMorgan Chase filed a patent application for a system capable of “space-based transactions”. The financial firm aims to allow for payment connectivity between on-planet and off-planet machines. JP Morgan’s filing details a system for finding satellites that are capable of making payments and using blockchain and Stablecoins as a base for transactions.
JP Morgan states that space-based payments may catalyze the economy. According to their website; “SpaceBridge2 – that would allow parties to request and pay for services without having to worry about complex inter-satellite communications and transactions.
To contextualize our work, we created a fully functioning demo where you can follow simulated transactions from an Earth-based station to a satellite in Lower Earth Orbit (‘LEO’), to a second satellite, also in LEO. The transactions are set within a narrative that simulates a user on Earth, Keerthi, procuring satellite imaging data. The transactions themselves took place on an Ethereum-based blockchain network and via satellite communications.” They utilize satellites on Earth and in low Earth orbit and couple them with blockchain to complete the transactions. Additionally, they have the satellites communicate and form a ledger of all the transactions that take place.
The space economy is growing astronomically. Worth an estimated 518.4 billion in the year 2023, and is anticipated to grow to a whopping 1,110.84 billion by 2030, according to CoherentMI. Additionally, we have investments increasing in both the public and private sectors, with global space spending predicted to increase by 41% in the next five years.
It is unclear why exactly JP Morgan has filed for this particular patent, however, there are several reasons why they could’ve added space to their portfolio.
Firstly, the diversification and expansion of their portfolios. Currently, space travel and expansion are only attainable by the government and those in the private sector with deep pockets. Perhaps they feel this is the best way to attract an extremely wealthy clientele. Expanding a portfolio with sound investments helps with long-term growth potential, something that is desperately needed in an ever-changing economy.
Secondly, space-based systems such as satellites may provide more secure and reliable communication channels for financial transactions, especially in areas with limited terrestrial infrastructure. (More secure financial transactions are never a bad thing.)
Thirdly, a space-based payment system could potentially facilitate global transactions more efficiently by bypassing traditional banking infrastructure and relying on satellite networks.
These are, however, the less futuristic and more currently realistic applications for their patent. By creating space-based transactions JP Morgan could use space data as a service in many industries including military communications, open ocean surveillance, environmental and climate change monitoring, national security, and an emergency response system. Space data can also be used to support new and emerging technologies and industries such as autonomous vehicles, space manufacturing, space robotics, and space sustainability.
Whatever the future has in store for the space bank and economy, JP Morgan will be a part of it. You can check out the demo of SpaceBridge2 here.
Nicole is a recent graduate (okay fine, a recent-ish graduate) of Texas State University-San Marcos where she received a BA in Psychology. When she's not doing freelance writing, she's doing freelance Public Relations. When she's not working, she's hanging out with dogs or her friends - in that order. Nicole watches way too much Netflix and is always quoting The Office. She has an obsession with true crime and sloths.
