JPmorgan ChaseThe largest bank in the United States doubles its bet on the crypto room by bringing its own token of the same name onto the market and further blurred the boundaries between commercial banks and the crypto industry.
The bank announced on Tuesday that, in cooperation with Crypto Exchange, it would control the new digital currency called JPMD in the coming days Coin base. Rather than A StablecoinAs some expected, JPMD will be a deposit token – a digital presentation of a bank deposit that is managed with which Blockchain Technology. The company submitted a brand for “JPMD” at the weekend.
“This pilot combines the credibility of JPmorgan and Base to bring institutional money into a more global economy,” said Jesse Pollack, VP of Engineering at Coinbase.
The token is used to broadcast around Assets. “We always believed in having a token -based solution on public blockchains,” he said.
The bank plans to exhibit JPMD based on a public Ethereum-Abased blockchain, which is managed by Coinbase. According to Mallela, it will only be available to the institutional customers of the JPMorgan, which includes companies and pension funds. However, JPMorgan plans to expand the use of his JPMD token to institutional customers in the coming months.
Deposit stable vs. stable coins
The decision of JPMorgan to create a deposit token instead of a stablecoin is a remarkable break in an otherwise new company trend and enables the bank to withdraw in a crowded area.
Several large companies, including Meta And Google have recently expressed interest in the inclusion of stable coins in their payment structures, probably because the cryptocurrency – the 1: 1 is supported to the US dollar – is more stable than other forms of crypto how Bitcoin.
Due to its different applications, JPmorgan decided more than a stable coin, said Mallela. Stable coins such as Ther’s USDT and CIRCLE’s USDC are mainly used by retail customers for cryptoandel, transfers and as a value memory and managed by Krypto company, he says. Payment sticks, on the other hand, are better suited for institutional customers because they are exhibited by a licensed bank, which is better integrated into existing institutional financial systems.
“Institutional customers can treat JPMD as bank deposits in their balance sheet and offer security with regard to financial and accounting treatment,” said Mallela.
Each JPMD deposits that is traded on the basis is represented a claim for deposit against JPMorgan. Instead of being supported by the US dollar like a stable coin of 1: 1, JPMD is secured by “the same liquidity frames such as traditional banks,” said Mallela.
