JPMorgan will be a deposit told by the dollar called JPMD on Coinbase’s Base Blockchain within a few days, said the Global Blockchain Division Co-Head Naveen Mallela in an interview with Bloomberg News on 17 June.
The test will transfer a fixed amount of JPMD of the digital wallet from the bank to Coinbase, making it available to Token for selected institutional users for payments and settlements.
Coinbase’s institutional customers will then use JPMD for transactions on chains. JPMorgan expects the test to take a few months before it will be extended to other customer segments and extra currency coupures, awaiting the regulations.
JPMD represents a claim on deposits that are kept at the bank and differs from stablecoins that depend on separate securities reserves.
Mallela called Deposit tokens “a superior alternative” for institutions because they are active in the fractional reserve bench system, be able to earn interest and be eligible for deposit insurance.
JPMorgan already knew more than $ 2 billion a day about his private Kinexys Digital Payments Network, formerly JPM Coin.
Commercial banking on-chain
The announcement follows JPMorgan’s trademark request of 16 June For ‘JPMD’, which relates to trade, transfer and payment services linked to digital tokens. The submission quotes electronic fund transfers, custody and real -time token trade, all of which are under ownership of the bank.
Base confirmed the collaboration On June 17, Add:
“It will be the first token of its kind on a public blockchain, making fast, safe, 24/7 money movement between familiar parties. […] Moving money should last seconds, not days. Commercial banking comes on-chain. “
According to Mallela, JPMorgan’s white paper on deposit tokens argues that commercial bank money is already good for more than 90% of circulating funds and probably accept a comparable share in digital form.
In addition, JPMorgan expects the institutional demand for a bank information for Stablecoins to stimulate early use of JPMD.
In anticipation of a successful pilot and regulation fight, the bank plans to scale up the volumes of issue and add currency options, position deposit chefs as a core tool for cross-border settlement and liquidity management at the chain.
Large banks and companies, such as Bank of America and the Depository Trust & Clearing Corporation (DTCC)have increased the blockchain experiments as congress promotes stabilecoin legislation that can formalize the reserve and audit rules.
