JPMorgan Chase & Co. has introduced the deposit token JPM Coin for corporate clients, expanding the use of digital assets in traditional finance. The new instrument represents US dollar deposits held by the bank and enables transactions through the public blockchain Base, linked to Coinbase.
Naveen Mallela, Head of Blockchain at Kinexys, noted transactions now take place within seconds and are available 24 hours a day, and it is beneficial for institutional clients.
“We think that stablecoins get a lot of buzz, but for institutional clients, deposit-based products offer a compelling alternative,” Mallela said. “These can be yield-bearing.”
The token has been tested in collaboration with Mastercard, Coinbase and B2C2. The bank plans to extend access to partner institutions, add other currencies pending regulatory approval, and integrate the product with additional networks.
In June, JPMorgan registered the ticker JPMD and announced plans to launch a euro-denominated version under the symbol JPME. The project marks one of the bank’s most significant moves into blockchain technology.
JPMorgan is following a global trend in which Citigroup, Santander, Deutsche Bank and PayPal are developing digital payment solutions. The launch coincided with the implementation of the Genius Act, a US law regulating the use of stablecoins.
Although the financial sector has experimented with blockchain for nearly a decade, few projects have achieved commercial success. JPMorgan remains one of the most active players in the space: its Kinexys Digital Payments network processes more than $3 B in transactions daily, while the total volume of its payments division exceeds $10 T.
Read also:
- JPMorgan to Add Bitcoin and Ethereum to Its Collateral List — Bloomberg
- JPMorgan, Bank of America, and Citigroup Discuss Launching a Joint Stablecoin
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