JPMorgan Chase has announced the launch of its JPMD token on the Base network, emphasizing its commitment to cryptocurrency integration.
Launch of the JPMD Token
JPMorgan Chase has announced that it will launch its own JPMD token on the Base network. The token will represent dollar deposits at the bank and serves as another step toward bridging fiat and cryptocurrency. The pilot JPMD token will also be launched on Coinbase for early testing, with the first transactions expected to take place within days.
Pilot Program for Institutional Clients
The JPMD token will be denominated in US dollars and aimed at Coinbase's institutional clients. It will not be available to retail users. JPMorgan will conduct a pilot program set to run for several months.
Comparison with Regular Stablecoins
Deposit tokens are not entirely similar to stablecoins, as they represent a deposit claim against a commercial bank backed by fiat. 'From an institutional standpoint, deposit tokens are a superior alternative to stablecoins,' said Naveen Mallela, global co-head of the bank's blockchain division.
The launch of the JPMD token highlights JPMorgan's drive to expand its presence in the crypto ecosystem and provide clients with new opportunities in the digital financial space.
