JPMorgan Chase, one of the largest banks in the world, has officially confirmed the launch of the pilot project for the JPMD token on the Base blockchain, owned by Coinbase. This deposit token, which represents dollar deposits in the bank, is the first step towards integrating traditional finance with public blockchains. Unlike stablecoins, JPMD is backed by real deposits, ensuring regulatory compliance and the potential for interest accrual.
The pilot, led by the blockchain division of Kinexys, will allow institutional clients to make fast and secure transactions 24/7. According to Navin Mallela, co-head of Kinexys, the token will be transferred to the Coinbase platform for testing in the coming days. The project will last several months, after which the bank plans to expand it to other currencies, subject to regulatory approval.
The launch of JPMD marks an important milestone for Base, which could serve as a catalyst for the mass adoption of blockchain technologies in the banking sector. It also underscores the growing role of tokenization in modern finance, combining the security of banking systems with the efficiency of decentralized networks.
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