JPMorgan announced its latest digital asset, the JPM Coin. This is a blockchain-based deposit token aimed at institutional transfers. This builds on the pivot in Wall Street into crypto.
JPMorgan to Launch JPM Coin
Bloomberg reported that the bank was about to introduce its own crypto token. The JPM Coin represents tokenized dollar deposits at the bank and is now being rolled out to select institutional clients, according to Naveen Mallela, global co-head of JPMorgan’s blockchain division Kinexys.
The token allows participants to instantly send and receive funds. This would settle transactions in seconds, not days, and run 24/7. This contrasts with classic interbank systems, which are limited by business hours.
It also confirmed that the initial operations of the token will be based on Base, a public blockchain developed by Coinbase. This is a big moment for one of the world’s biggest banks.
Mallela added that this launch comes after successful tests with major companies. This includes Mastercard, Coinbase, and B2C2. He added that the company also intends to provide its services to institutional clients soon.
In June, the company filed a trademark for “JPMD” with the U.S. Patent and Trademark Office. This would cover all types of digital asset services ranging from crypto payments to trading. The bank has reserved another ticker, JPME. This hints at plans for a euro-denominated deposit token.
Mallela emphasized that JPM Coin is an institutional-grade alternative to stablecoins. He said deposit-backed tokens are more attractive to large clients due to potential features to bear yield.
JPMorgan Joins Other Global Banks
The launch also follows a series of similar moves by several major firms to try crypto payment systems for better speed and lower costs. Citigroup, Deutsche Bank, Santander, and online payments group PayPal are among them.
BNY Mellon, HSBC and others are also working on deposit token concepts. Mallela said that JPM Coin can also be used as collateral on Coinbase.
The announcement of JPM Coin comes after JPMorgan announced that it would allow the use of Bitcoin and Ethereum as collateral for loans by select clients. In analysts’ views, this will give institutional players greater flexibility.
The firm’s JPM Coin Network, which is now rebranded as Kinexys Digital Payments, will further simplify operations with the addition of the JPM Coin.
Source: https://coingape.com/jpmorgan-launches-jpm-coin-token-for-institutional-transfers/
