JPMorgan Chase, the largest bank in the US, has confirmed the launch of JPMD, a new digital token designed to represent bank deposits in a tokenized way. This initiative has different proposals from traditional stubcoin, but marks another step for entities in the world of digital finance.
Unlike stable currencies such as USDT and USDC, which users can use, they operate in the open market. JPMD will be an exclusive deposit token for institutional clients.
As Naveen Mallea explained, Kinexys Global Co -Director -JPMorgan Cryptocurrency Unit – The goal is Promote digital asset liquidation operations and cross-border paymentsMaintains direct integration with traditional banking systems.
The token works based on the public network developed by Coinbase with Ethereum. Among the outstanding features of JPMD are 24/7 settlements, interest-generating capabilities, and their limited availability only for licensed financial institutions.
From the entities, they emphasize that the main advantage over stubcoin is a direct link to existing banking products, thus providing greater dependency and reliability for large market actors.
The announcement came one day after the JPMD registered trademark application was published and produced speculation, as reported by Cryptootics. Some believe it will become an existing style of stubcoin, but banks have revealed that the product has a different nature and is associated with traditional banks.