The banking titan JPMorgan is piloting a US dollar-backed permissioned deposit token on the Ethereum (ETH) layer-2 scaling resolution constructed by the American crypto alternate Coinbase.
In a press release, Coinbase says that JPMorgan is launching the token referred to as JMPD on Base by 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 world on-chain fee rails. The monetary behemoth is becoming a member of over 200 banks, brokers, fintechs and fee suppliers that faucet on the alternate’s crypto-as-a-service platform for his or her digital asset choices.
The financial institution plans to finally permit its institutional purchasers to immediately and securely transfer cash on-chain at any time for a fraction of a cent. JPMD is constructed solely for institutional purchasers, although, and isn’t accessible to retail or particular person shoppers.
Base has additionally rolled out assist for the wrapped variations of Cardano (ADA) and Litecoin (LTC). In a put up 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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