JPMorgan Brings Dollar Deposit Token to Coinbase's Base Network: Report

JPMorgan Chase has launched its digital deposit token, JPM Coin (JPMD), on Coinbase's Base network for institutional clients, marking the bank's first use of a native payment product on a public blockchain. This allows for instant transactions on the Ethereum network instead of the multiple business days typically required. Unlike stablecoins backed by external reserves, JPMD is based on actual bank deposits, offering a blockchain-based version of commercial bank money. The bank aims to expand the use of JPMD to additional blockchains and introduce a euro-backed token called JPME, pending regulatory approval. The launch follows trials with Mastercard and B2C2. Despite concerns about data privacy, blockchain outages, and anti-money laundering risks, experts predict that tokenized deposits can enhance operational efficiency and facilitate a 24/7 financial ecosystem. JPMorgan's deployment is part of a broader drive into digital assets, allowing institutional clients to utilize cryptocurrencies as collateral for loans by the end of 2025.

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