JPMorgan Chase has launched its deposit token on Coinbase’s Base network, marking its first native payment product deployment on a public blockchain. The JPM Coin (JPMD) allows instant transactions around the clock via Ethereum layer-2 network for institutional clients, a major expansion for JPMorgan’s blockchain operations.

Unlike stablecoins, JPMorgan’s deposit token represents money held as deposits within the bank, acting as a blockchain-based version of commercial bank money. It remains available only to institutional clients as regulators review its broader use, offering the same claim on the bank as a traditional account balance.

Following a successful trial period involving Mastercard, Coinbase, and liquidity provider B2C2, JPMorgan plans to extend JPMD access beyond institutional clients. The bank also aims to introduce new currency versions, including a euro token called JPME, while expanding to additional blockchains pending regulatory approval.

JPMorgan’s deposit token debut marks a year of digital asset expansion, from settling tokenized U.S. Treasuries on Chainlink to enabling 24/7 client settlements with Brevan Howard Digital. The bank also allows institutional clients to use Bitcoin, Ethereum, and crypto ETFs as loan collateral, showcasing a commitment to blockchain integration and innovation.

Mitchell Amador, CEO of Immunefi, emphasized the importance of bridging traditional banking systems with on-chain environments to minimize vulnerabilities. While DeFi protocols have maintained losses below 1% of total value locked this year, banks must match this standard as they bring deposits on-chain, ensuring a seamless transition to a 24/7 financial ecosystem.

Read more at Yahoo Finance: JPMorgan Brings Dollar Deposit Token to Coinbase’s Base Network: Report