The banking titan JPMorgan is piloting a US dollar-backed permissioned deposit token on the Ethereum (ETH) layer-2 scaling answer constructed by the American crypto trade Coinbase.
In a press release, Coinbase says that JPMorgan is launching the token referred to as JMPD on Base by means of its blockchain enterprise unit Kinexys.
“These are USD-denominated and backed 1:1 by deposits—combining the programmability of on-chain finance with the belief and compliance that regulated monetary establishments require.”
JPMorgan is launching the token to reap the benefits of international on-chain fee rails. The monetary behemoth is becoming a member of over 200 banks, brokers, fintechs and fee suppliers that faucet on the trade’s crypto-as-a-service platform for his or her digital asset choices.
The financial institution plans to ultimately enable its institutional shoppers to immediately and securely transfer cash on-chain at any time for a fraction of a cent. JPMD is constructed completely for institutional shoppers, although, and isn’t obtainable to retail or particular person customers.
Base has additionally rolled out assist for the wrapped variations of Cardano (ADA) and Litecoin (LTC). In a publish on the social media platform X, Coinbase says it holds 1:1 reserves of the belongings that again cbADA and cbLTC.
“cbADA and cbLTC are actually reside on Coinbase. cbADA and cbLTC are ERC-20 tokens backed 1:1 by ADA and LTC held in custody by Coinbase.”
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