JPMorgan developing crypto deposit token for cross border payment services
The banking giant JPMorgan is developing its native token powered by the blockchain technology.
JPMorgan Chase & Co. is an American multinational and universal bank and financial services firm. This banking giant is headquartered in New York City and incorporated in Delaware. This bank is the largest bank by market cap in America.
On 8 Sep 2023, Bloomberg reported that JPMorgan is working on Deposit token. That new token will operate on the blockchain technology and will allow the corporate clients to speed up payments and settlements.
The main goal of this token will be to bring enhancement in the cross-border payment services & financial settlement easily among institutional customers.
It is worth it to note that JPMorgan already provides payment services with the help of its JPM coin. The JPM coin allows corporate clients to transfer dollars and euros across the financial institutions. But here the new Deposit token will provide the ability to corporate customers to deposit funds directly with banks & also other settlements associated with securities assets.
It seems that the Deposit Token concept is very similar to the JPM coin, so it is obvious that it will go through the Know Your Customer and anti-fraud processes.
Here people need to understand that deposit tokens will not come into use for JPMorgan customers until it will secure regulatory approval from the corresponding regulatory bodies.
JPMorgan talked about the Deposit token concept in Feb of this year. At the time, JPMorgan noted that the deposit token concept has better stability & reliability over other existing solutions e.g. Central Bank Digital Currency (CBDC), Stabelcoins, etc.
As per experts’ point of view, JPMorgan’s Deposit token will create a very big competition against alpeople the players which are actively participating in the stablecoin business. Last month, neo-bank PayPal launched the Ethereum blockchain-powered stablecoin PYUSD.
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