JPMorgan has initiated a pilot program for a USD deposit token named JPMD on Base, a layer 2 Ethereum network developed by Coinbase.
JPMorgan’s New Blockchain Initiative
The American banking leader recently filed a trademark for JPMD, a crypto-centric platform offering trading, exchange, transfer, and payment services for digital assets. This initiative also includes the issuance of digital assets.
JPMD: An Alternative to Stablecoins
JPMD is designed as an alternative to stablecoins for the bank’s clients and represents JPMorgan’s first use of its Kinexys distributed ledger technology on a public blockchain.
Growing Interest in Stablecoins
Banks and enterprises are increasingly entering the stablecoin market as new regulations for dollar-pegged tokens are anticipated in the U.S. JPMorgan’s previous venture, JPM Coin, was used for settling trades on its private blockchain.
Industry Reactions
Jesse Pollak, Creator of Base and VP of Engineering at Coinbase, expressed excitement about JPMorgan’s move to blockchain, highlighting the benefits of Base’s rapid settlement capabilities.
This development could signal a shift in how institutional money interacts with the global economy.
