JPMorgan Chase’s foray into the blockchain ecosystem continues, the financial institution choosing the basic network to control its newly launched token, JPMD.
The pilot program was confirmed by Naveen Malleala, a manager of the JPMorgan Blockchain division, Kinexys, who declared Bloomberg That a fixed quantity of JPMD token will be transferred to Crypto Exchange Coinbase in the coming days.
The transfer will be facilitated by the blockchain of layer 2 of Coinbase, base, which Launched in 2023 and currently has the largest market share among 2 Ethereum strata Co Ringecko.
Mallela said the transaction will be denominated in US dollars, with additional currencies supported after obtaining regulatory approval.
At the end of the pilot phase, which should extend over several months, Coinbase institutional customers will have access to JPMD for transactions, according to Mallela.
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The deposit tokens are “superior” to the stablescoins
The pilot tests were announced a few days after JPMorgan filed a brand request for JPMDwhich describes a range of crypto services, including trading of digital assets, transfers and treatment of payments.
The deposit tokens, in particular, represent deposits in dollars held in customer bank accounts. Unlike stablescoins – digital representations of fiduciary currencies supported by cash and cash equivalents – deposit tokens work in the traditional banking frame.
“From an institutional point of view, deposit tokens are a higher alternative to stablecoins,” said Malélla in Bloomberg, noting that their fractional reserve support makes them more evolving.
The executive noted that JPMD could potentially pay interest in the future, distinguishing it from Most stablecoinswhich generally do not generate yield.
However, compatible stablecoins can grow over time, some industry initiates suggest that the powerful The American banking hall is “panicked” On their potential to disrupt traditional financial models.
According to sources close to the banking lobby, Professor of New York University, Austin Campbell, said that banking leaders feared being “injured” by the rise of stable -to -yield stables.