JPMorgan has officially launched blockchain-based deposit token JPM Coin for institutional clients. The token represents dollar deposits at the bank, allowing users to send and receive money via Coinbase’s Base public blockchain.
Naveen Mallela, global co-head of JPMorgan blockchain division Kinexys, told Bloomberg on Wednesday that the rollout will enable payments to process in seconds and 24/7, bypassing traditional banking delays.
According to Mallela, the bank is considering making the token accessible to clients of its clients at a later stage. It will also expand to other currency denominations, pending approval from regulators. Mallela described deposit tokens as “yield-bearing,” differing from stablecoins. They are digital claims on funds already sitting in client bank accounts, designed to facilitate easy blockchain transactions.
The rollout comes after successful pilot tests with major firms, including Mastercard, Coinbase, and B2C2. Coinbase is reportedly set to accept JPM Coin as collateral for transactions and liquidity operations.
In June, JPMorgan launched the first banking token, “JPMD”, on the Coinbase Base network, following a trademark application for “JPMD.” JPMD is fully backed one-to-one by U.S. dollars and will initially be available to institutional clients only, the banking giant said at the time.
“We think that stablecoins get a lot of buzz, but for institutional clients, deposit-based products offer a compelling alternative,” Mallela said.
