In June Kinexys by J.P. Morgan unveiled a pilot of the JPMD deposit token on the Coinbase-developed Base public blockchain. Now the token has moved into production using the JPM Coin brand and is available to J.P. Morgan’s institutional clients for 24/7 on-chain transactions. Crypto market maker B2C2, Mastercard and Coinbase are amongst the first to execute trial transactions.
Unlike a stablecoin, the deposit token is backed by bank deposits, with J.P. Morgan the first bank to issue a US dollar token on a public blockchain. Compared to stablecoins, a key advantage for banks is that the minting and redeeming of deposit tokens should be more convenient. That’s because there’s no need to move money from a bank account to a crypto exchange or stablecoin issuer in order to mint a token. “JPM Coin delivers the security of bank-backed deposits and settlement, combined with the speed and innovation of 24/7, near real-time blockchain transactions, increasing efficiency and unlocking liquidity,” said Naveen Mallela, Global Co-head of Kinexys by J.P. Morgan.
The token is issued by J.P. Morgan Chase Bank in the US, so the only requirement is that the client has an account there. JPM Coin transactions can take place internationally, provided the holder has a US bank account. One of the most obvious use cases is for the settlement of crypto transactions.
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