A recent report from Bloomberg revealed that JPMorgan has launched a deposit token, JPM Coin. According to the Wednesday report, the world’s biggest bank by market capitalization tapped into Base’s blockchain infrastructure to launch the new coin. 

As Bloomberg revealed, each of the new JPM coin represents a deposit held at a bank. The token is now available for the bank’s institutional clients.  

More so, JPMorgan explained how the JPM coin rely on blockchain technology to allow users to send and receive money instantly. By that, the initiative guarantees a 24/7 payment system which is an upgrade to the existing traditional finance infrastructures in the US. 

Meanwhile, JPMorgan stated that the JPM coin is not a stablecoin as it represents a direct deposit and it is a regulated project of the bank. As a result of this narration, the deposit token is different from stablecoins that are issued by a private company and backed by physical assets to support their value. 

Early this week, JPMorgan partnered with the Singapore multinational banking group DBS to develop a blockchain-based tokenization framework to enable on-chain transfers between their deposit token ecosystems. With the move, the partners hope to ensure smooth and fast movement of funds through their faster institutional payment systems.

JPMorgan’s increasing presence in the blockchain technology space

Recall that in June, JPMorgan carried out a pilot phase for the JPM token by transferring some of the coins to Coinbase through the Base network. Thanks to this initiative, Coinbase’s institutional clients were able to access the token and test its efficiency. 

In recent times, JPMorgan seems to have increased its participation in the tokenized assets and blockchain technology sector.

Before the launch of the JPM coins, in June, the financial institution completed the first transaction on the yet-to-be-launched Kinexys Fund Flow tokenization platform. A Binbits report revealed that top blockchain technology firms like Chainlink and Ondo Network participated in the exercise. 

Likewise in October, the banking giant said it will allow customers to use digital assets like Bitcoin and Ethereum as collateral for loans. Similarly, reports disclose that there are plans underway for JPMorgan to venture into offering crypto exchange services. 

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