JPMorgan has officially started testing the JPMD token, which represents a US dollar deposit token, on the Base blockchain. This marks the first instance of the bank utilizing public blockchain for its operations.
Launch of JPMD Token on Base Blockchain
This week, JPMorgan began trials for the JPMD token on the Base blockchain. This move opens new possibilities for the use of public blockchain in traditional financial operations. During the pilot, the token will be transferred to the Coinbase platform, which also oversaw the development of the Base network.
Kinexys by JPMorgan and Its Role
The JPMD token will be managed through Kinexys, JPMorgan’s blockchain payments division, previously known as JPM Coin. Kinexys processes more than $2 billion daily without intermediaries, allowing real-time institutional settlements to occur without traditional delays.
JPMorgan's Focus on Institutional Clients
JPMorgan targets institutional clients who require fast, compliant settlement tools. Unlike stablecoins, deposit tokens like JPMD are subjected to regulatory oversight and can provide deposit protection, making them more acceptable to traditional financial institutions.
The launch of JPMD represents a significant step in integrating the traditional banking sector with blockchain technologies. JPMorgan continues to explore the potential uses of the token and its expansion after the pilot program.
