JPMorgan launched a new digital token on the Coinbase Base network.

One of the leading banks in the US, JPMorgan, has made a remarkable move in the digital asset space by launching a digital deposit token called JPM Coin for its corporate clients. This new token represents dollar deposits held by the bank while providing users with 24/7 real-time money transfer capabilities.

According to Bloomberg sources, the deposit token named JPM Coin (JPMD) operates on Coinbase's public blockchain network Base, and the bank has started to offer the token to its corporate clients. This token eliminates the limitations of traditional banking, allowing money transfers to be made in seconds.

Naveen Mallela, the co-chairman of JPMorgan’s blockchain unit Kinexys, noted that the system has undergone several months of testing with significant institutions such as Mastercard, Coinbase, and B2C2. Payments have been optimized to be conducted within short time frames with this new structure. Furthermore, there are plans to expand JPM Coin to different blockchain networks and currencies in the future.

The token will also be accepted as collateral on the Coinbase platform. Unlike stablecoins, deposit tokens represent digital rights over the money available in bank accounts. This situation offers potential interest returns for investors, making it an attractive alternative, especially for institutional investors.

This significant development occurs during a period when major financial institutions such as Citigroup, Deutsche Bank, Santander, and PayPal are also moving towards similar digital token projects. JPMorgan’s move strongly highlights the banking sector's shift towards digital deposit tokens amid a process where the stablecoin market in the US is regulated by the Genius Act.