- JPMorgan has rolled out JPM Coin (JPMD) on the Base blockchain for institutional 24/7 settlement.
- JPMD focuses on regulatory compliance, including KYC, for institutional on-chain payments.
- JPMorgan plans to expand JPMD to other blockchains and develop a euro-denominated version (JPME).
JPMorgan has officially rolled out its JPM Coin deposit token (JPMD) to institutional clients on the Base Layer 2 blockchain. This marks a significant development in the bank’s expansion of blockchain-based services. Following months of testing and a successful pilot program initiated in June, JPMorgan is now offering JPMD for near-instant, 24/7 settlement of transactions.
JPM Coin on Base: Enhancing Institutional Transactions
The JPM Coin deposit token is designed for institutional clients, allowing them to send and receive funds on the Base blockchain. JPMorgan aims to improve the speed and efficiency of onchain payments with the token. Unlike many stablecoins, JPMD is built with regulatory compliance in mind, offering know-your-customer (KYC) and banking infrastructure that institutions require. This move represents the bank’s commitment to facilitating on-chain transactions within a regulated framework.
JPMorgan’s testing phase has already involved prominent financial institutions such as B2C2, Coinbase, and Mastercard. These players have successfully completed test transactions using the JPM Coin deposit token. The pilot program’s completion signals the readiness of JPMD for widespread use among institutional clients. The token’s availability on Base offers a new method of settlement for these clients, ensuring faster and more efficient transaction processing.
Future Expansion Plans for JPM Coin
JPMorgan’s efforts with JPMD are just the beginning. According to Naveen Mallela, global co-head of Kinexys by JPMorgan, the bank plans to expand its deposit token offerings across additional blockchains. Furthermore, JPMorgan has filed for the trademark JPME, which suggests that a euro-denominated deposit token could be in development. This move signals the bank’s intention to broaden its blockchain offerings to a wider range of currencies.
In addition to the launch of JPMD, JPMorgan has partnered with DBS to develop an interoperability framework for tokenized deposits. This collaboration aims to facilitate transfers of tokenized deposits across both public and permissioned blockchain networks. This framework will allow greater flexibility in moving assets across different blockchain platforms, further advancing the adoption of blockchain in financial transactions.
Besides JPMorgan, other big financial entities are also delving into tokenized deposits. According to reports, BNY Mellon is considering offering similar services to its customers for making payments via blockchain. Along with being the pioneers of the project, UK banks such as Barclays, Lloyds, and HSBC have also tested the waters with the tokenized pound sterling deposits, which is a clear sign that the transition to blockchain-powered banking is being accepted unanimously in the sector.
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