JPMorgan Chase & Co. introduced its new stablecoin, JPMD, which will operate on the Base network, focusing on institutional clients.
Introduction to JPMD
This week, JPMorgan filed for a trademark for digital currency JPMD. The bank announced the launch of its permissioned stablecoin JPMD on the Base network, which is a Layer 2 solution based on Ethereum. JPMorgan aims to offer stablecoin services to approved institutional clients.
Cryptocurrency Stabilization Department
After many years of criticizing Bitcoin and digital assets, JPMorgan is now fully embracing emerging technologies to remain relevant in the future. The U.S. Senate is expected to discuss the GENIUS Act soon, which will regulate the stablecoin market. According to forecasts, the stablecoin market could grow from its current $261 billion to around $3.7 trillion by the end of this decade.
Impact on Base Network
The strategic launch of JPMD on the Base network is expected to significantly increase on-chain activity. Currently, the Base network leads among Ethereum's Layer 2 solutions, with a total value locked of around $3.7 billion and a stablecoin market cap of approximately $4.13 billion.
The launch of JPMD represents a significant step for JPMorgan in adapting to the changing digital asset market and could have a substantial impact on the future development of the Base network.
