JPMorgan, the banking giant, is currently testing a US dollar-backed permissioned deposit token on Ethereum’s layer-2 scaling solution provided by Coinbase, a leading American cryptocurrency exchange.
According to a statement released by Coinbase, JPMorgan is introducing a token named JMPD on Base through Kinexys, its blockchain business unit.
“These tokens are USD-denominated and backed 1:1 by deposits, combining the programmability of on-chain finance with the trust and compliance required by regulated financial institutions.”
JPMorgan is launching this token to leverage global on-chain payment infrastructure. The financial giant is now part of the 200+ banks, brokers, fintech companies, and payment providers utilizing Coinbase’s crypto-as-a-service platform for their digital asset services.
The bank’s objective is to enable its institutional clients to move money on-chain instantly and securely at any time for a minimal cost. However, JPMD is exclusively designed for institutional clients and not accessible to retail or individual consumers.
Base has also introduced support for wrapped versions of Cardano (ADA) and Litecoin (LTC). In a recent announcement on the social media platform X, Coinbase confirmed that it holds 1:1 reserves of the assets supporting cbADA and cbLTC tokens.
“cbADA and cbLTC are now available on Coinbase. These ERC-20 tokens are backed 1:1 by ADA and LTC held in custody by Coinbase.”
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