The world's largest bank, JPMorgan Chase, continues to expand its presence in the cryptocurrency world.
The company announced that it has developed a new stablecoin-like token named "JPMD". JPMorgan officials speaking to CNBC stated that this new token will be launched on Base, Coinbase's public blockchain platform built on the Ethereum network.
JPMD, defined as a "deposit token", will be a digital representation of commercial bank deposits. Developed for corporate customers, this token will be able to provide 24/7 payment and exchange opportunities, as well as interest income. Naveen Mallela, global co-head of JPMorgan's blockchain unit Kinexys, said JPMD is expected to be used by institutional clients for on-chain asset swaps and international B2B transactions.
Mallela said, "Being an interest-bearing structure will provide higher interchangeability with existing bank products."
JPMorgan argues that deposit tokens are more practical for institutional clients compared to stablecoins. This new approach allows for faster and more efficient digital transactions while staying connected to the traditional banking system.
Stablecoins are generally known as digital assets that are pegged one-to-one to fiat currencies like the dollar. Among the most well-known stablecoins in the market are Tether's USDT and Circle's USDC. According to CoinGecko data, the global stablecoin market has reached a size of approximately 262 billion dollars.
*It is not investment advice.
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The World's Largest Bank JPMorgan is Making Successive Moves in Cryptocurrency! They Didn't Let Today Go to Waste Either.
The world's largest bank, JPMorgan Chase, continues to expand its presence in the cryptocurrency world.
The company announced that it has developed a new stablecoin-like token named "JPMD". JPMorgan officials speaking to CNBC stated that this new token will be launched on Base, Coinbase's public blockchain platform built on the Ethereum network.
JPMD, defined as a "deposit token", will be a digital representation of commercial bank deposits. Developed for corporate customers, this token will be able to provide 24/7 payment and exchange opportunities, as well as interest income. Naveen Mallela, global co-head of JPMorgan's blockchain unit Kinexys, said JPMD is expected to be used by institutional clients for on-chain asset swaps and international B2B transactions.
Mallela said, "Being an interest-bearing structure will provide higher interchangeability with existing bank products."
JPMorgan argues that deposit tokens are more practical for institutional clients compared to stablecoins. This new approach allows for faster and more efficient digital transactions while staying connected to the traditional banking system.
Stablecoins are generally known as digital assets that are pegged one-to-one to fiat currencies like the dollar. Among the most well-known stablecoins in the market are Tether's USDT and Circle's USDC. According to CoinGecko data, the global stablecoin market has reached a size of approximately 262 billion dollars.
*It is not investment advice.
Follow our Telegram group, Twitter account, and Youtube channel for exclusive news, analyses, and on-chain data right now! Also, download our Android and IOS Apps to start live price tracking immediately!