- JPMorgan has launched its dollar-backed stablecoin, JPM Coin (JPMD), for institutional transfers on the Base blockchain network.
- The system allows instant, 24/7 settlements, eliminating delays common in traditional banking.
- The rollout followed a pilot phase with leading institutions such as Mastercard, Coinbase, and B2C2.
- Future plans include expanding usage to clients’ customers, more currencies, and additional blockchains pending regulatory approval.
JPMorgan has started distributing its U.S. dollar-backed digital token, JPM Coin (JPMD), specifically for institutional transfers using the Base Network, an Ethereum layer-2 solution built by Coinbase. This move aims to speed up large-scale money transfers by providing instant, always-on payment settlements and avoiding traditional banking delays.
According to a statement from the Base network, JPM Coin is live for institutional use, allowing businesses to send and receive funds in seconds rather than days. The token is directly backed by U.S. dollar deposits held at JPMorgan, ensuring users can redeem tokens for actual dollars on demand.
The pilot program included participation from prominent organizations, including Mastercard, Coinbase, and B2C2. Coinbase CEO Brian Armstrong commented in a post that “On-chain payments are the future.” The collaboration highlights growing industry interest in blockchain-based payment systems.
JPM Coin’s current use is limited to institutional clients, but the company intends to broaden access to clients’ customers and support additional currencies, pending regulatory review. As stated by Naveen Mallela, global co-head of Coinbase’s Kinexys blockchain division, JPMorgan may also deploy the digital token on other blockchain networks in the future, according to Bloomberg.
The launch is part of the bank’s broader expansion into digital finance, joining peers like Citigroup and Paypal in exploring blockchain for cost-effective, rapid transactions. JPMorgan has also registered the ticker JPME, signaling the possibility of a future euro-backed stablecoin. These developments come as more financial institutions engage with digital assets to enhance payment speed and efficiency.
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