The post JPMorgan Unveils Its U.S. Dollar-backed JPMD Stablecoin on Ethereum’s Base appeared first on Coinpedia Fintech News
After filing for a trademark patent for JPMD digital currency earlier this week, JPMorgan Chase & Co. (NYSE: JPM) has unveiled its permissioned stablecoin on the Base network, a top-tier Ethereum (ETH)-based layer two scaling solution backed by Coinbase Global Inc. (NASDAQ: COIN). The well-established bank, with around $4 trillion in assets under management (AUM), intends to offer stablecoins services to approved institutional clients.
“Kinexys by JPMorgan is launching JPMD, a USD deposit token for institutional clients, on Base. It will be the first token of its kind on a public blockchain, enabling fast, secure, 24/7 money movement between trusted parties,” Base noted.
JPMorgan Enters Stablecoins Market On Time
After many years of criticizing Bitcoin and the digital asset market, JPMorgan has fully embraced the nascent technology to remain relevant in the future. On Tuesday, the U.S. Senate is expected to pass the GENIUS Act, which will regulate the stablecoins industry.
According to Scott Bessent, the U.S. Treasury Secretary, the Stablecoins market could grow from its current $261 billion to about $3.7 trillion by the end of this decade.
“A thriving stablecoin ecosystem will drive demand from the private sector for US Treasuries, which back stablecoins. This newfound demand could lower government borrowing costs and help rein in the national debt,” Bessent noted.
Impact on Base Network
The strategic launch of the JPMD by JPMorgan on the Base network will play a crucial role in increasing its on-chain activity. Already, the Base network is the current leader in Ethereum’s Layer Two (L2) chains, with about $3.7 billion in total value locked (TVL) and around $4.13 billion in stablecoins market cap.