According to a Wednesday report by Bloomberg, JPMorgan Chase, the largest bank in the US, has officially launched a deposit token called "JPM Coin." The token has been rolled out for the bank's institutional clients.
A deposit token, explained
A deposit token is a blockchain representation of deposits sitting in a bank account.
For instance, if a company has $10 million deposited at the banking behemoth, it can receive $10 million worth of JPM Coins on a blockchain.
Such tokens are fully backed and can be instantly transferred or used as collateral on a blockchain network.
JPMorgan initially announced JPM Coin all the way back in June 2019, which was a pilot program for tokenized dollar deposits. Back then, it was a pilot program meant to test instant payments between institutional clients.
Powered by Base
The JPM Coin now runs on Base, the public blockchain built by Coinbase. The collaboration was first announced in June.
It makes it possible to instantly transfer funds instead of waiting for business hours or cross-border clearing delays.
Dan Burgin
U.Today Editorial Team
