NEW YORK—JPMorgan Chase is preparing to roll out a new digital product called a “deposit token,” designed as a digital representation of commercial bank money exclusively for institutional clients, CNBC reported.
The token, named “JPMD,” aims to offer an alternative to stablecoins while remaining closely tied to the traditional banking infrastructure, CNBC reported Tuesday, citing an interview with Naveen Mallela, global co-head of Kinexys, the bank’s blockchain division.
“We see institutions using JPMD for on-chain digital asset settlement solutions as well as for making cross-border business-to-business transactions,” Mallela told CNBC. “Given the fact that deposit tokens would eventually be interest bearing as well, this would provide better fungibility with existing deposit products that institutions currently use.”
According to the report, JPMorgan Chase plans to launch JPMD on Base, Coinbase’s public blockchain.
JP Morgan Chase’s announcement comes at the same time the GENIUS Act, which establishes clear guidelines for stablecoin issuers, was passed by the Senate.