Jpmorgan Chase to pilot the JPMD deposit token on the Coinbase base

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JPMorgan Chase, the main American bank by total assets, will lead a pilot program for JPMD, described by the bank as a deposit Token, on the basic Coinbase network, According to a new Bloomberg report. JPMD is intended to be used on public blockchains, but access will be limited to institutional customers.

Naveen Mallela, the world co-head of the Blockchain division of Kinexys Bank, believes that JPMD is a higher alternative to stablecoins for institutions.

“They are based on the fractional bank, we believe that it is more scalable,” Mallela told Bloomberg. He added that the deposit token could offer advantages compared to the floors, including potential features with interest and deposit insurance coverage in the future.

Kinexys, formerly known as Onyx, plays a direct role in the operation of JPMorgan’s flagship digital payment solution, commonly known as JPM Coin.

Last year, JPM Coin and Onyx were renamed like Kinexys and Kinexys Digital Payments like Part of the bank’s strategy to extend their capacities beyond the case of original JPM Coin.

Kinexys’ digital payments will continue to operate and develop alongside the new JPMD token pilot, noted Mallela.

The bank will soon execute its first JPMD transaction by transferring a fixed amount of tokens from its digital portfolio to Coinbase, using Base, known for its low transaction costs, its rapid settlement times and its growing adoption among the DAPPs.

The bank plans to execute the pilot for several months before extending the JPMD to additional currencies and types of customers, pending regulatory approval.

If it is executed, it would be the first time that a leading American commercial bank has launched a token supported by a deposit on a public blockchain. This decision follows a JPMorgan deposit on June 15 for the “JPMD” brand.

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