JPMorgan piloted JPMD stable on Coinbase-Blockchain
For the first time, JPMorgan leads public pilot project with a “deposit token” called JPMD. The project covers a cryptocurrency on the Ethereum Layer-2 solution base by deposits at the US bank.
JPMorgan & Chase will start a pilot test with a new digital token called JPMD. The cryptocurrencies should map US dollar money deposits, each covered in a ratio of 1: 1. The token is over that Base networka layer 2-blockchain of the crypto exchange Coinbase, transferred and tested to institutional customers.
Difference between stable coins and a single fox
Bredged stable coins are usually secured by cash equivalents such as US state bonds. The JPMD token, on the other hand, relies directly on bank deposits at regulated institutes. According to Naveen Mallela, global co-conductor from Kinexys (JPMorgan), the stocks of the deposit are “a superior alternative to stable coins”-more scalable, potentially interestable and possibly even combined with deposit protection in the future.
The pilot stipulates that a fixed amount of JPMD is transferred to the base network by JPMorgan – as a test run for international and decentralized use by institutional donors.
Traditional financial institutions on the blockchain
The JPMD test run marks an important step in the integration of traditional banks and public blockchains. JPMorgan already uses the internal network Kinexys (formerly JPM Coin) for internal payments and settlement. JPMD, on the other hand, now opens this system for external blockchain ecosystems.
Explained goal: Institutional customers should receive 24/7 access to liquidem, block-based money-with lower fees and greater transparency than in classic transfers.
The pilot runs for several months, after which an extension to other currencies and customers is planned – provided that the regulation plays. If the Proof of Concept succeeds, JPMD could have a model character-for other banks, brokers and existing cryptocurrency platforms that understand deposit tokens as a secure alternative to the stable coin offer.
Switzerland behind
Stable coins in general are among the most successful applications in blockchain technology. Unfortunately, Switzerland is behind. On the one hand, by the questionable attitude of the federal financial market supervision (Finma) The legal certainty that other digital assets enjoy. In fact, it is currently not possible to emit a StableCoin as a Swiss institute. The Federal Council's new legislative proposal, who is expected this autumnis therefore urgently necessary.
On the other hand, the established Swiss banks behave rather hesitantly. Postfinance, Swissquote and four cantonal banks offer trade and the custody of cryptocurrencies. However, the elephant in the room, UBS, oversleep the trend. And services beyond “execution-on” also remain rare. The UBS and ZKB did not react immediately to a request from cvj.ch.
