Traditional and decentralized finance sectors may merge soon, as JPMorgan incorporates blockchain technology

The divide between DeFi and TradFi may vanish in a few years as JPMorgan aims to merge institutional-grade payments with onchain assets. Recent pilot with Chainlink shows potential for traditional banks to connect with digital asset markets. Zaltsman predicts rapid convergence driven by improved infrastructure and industry collaboration.

JPMorgan recently piloted its new deposit token, JPMD, on Coinbase’s Base network, offering clients direct access to blockchain markets. Unlike stablecoins, these tokens remain within the bank’s system, bridging onchain liquidity with institutional cash management. Zaltsman sees this as a significant milestone in the bank’s blockchain journey, signaling a shift in traditional banking.

Nazarov notes JPMorgan’s influence on the banking sector, driving other institutions to pay attention. He highlights how cryptographic proofs and smart contracts can now provide smaller players with the same reliability as top-tier banks, opening up new opportunities in capital markets. This trend could spur competition and innovation in financial services.

Read more at Cointelegraph: DeFi and TradFi Convergence Closer Than Ever