NEW YORK–J.P. Morgan Chase has reportedly introduced a deposit token known as JPM Coin for institutional customers.
The move is part of a wider push by financial institutions to expand their digital asset business, noted Bloomberg, which reported the token, which represents dollar deposits with the bank, lets users send and receive money using the Base blockchain, affiliated with Coinbase.
That lets payments process within seconds and on a 24/7 basis, instead of days and confined solely to business hours, according to the report.
Deposit tokens are digital representations of traditional bank deposits, issued by regulated financial institutions and backed one-to-one by fiat currency held in reserve.
Other Trial Runs
Bloomberg further reported the launch follows a trial run of JPM Coin conducted in partnership with companies like Mastercard, Coinbase and B2C2. J.P. Morgan plans to eventually open the token to its own clients’ customers and expand to other currency denominations and other blockchains, according to bank officials.
As the CU Daily has reported, the launch is happening at a time when financial institutions such as Citigroup, Santander, Deutsche Bank and PayPal have been doing more testing with digital assets in the wake of passage of the GENIUS Act, regulates stablecoins and other digital currency.
