JPMorgan just put JPM Coin bank deposits on Base – and beat the Fed to 24/7 settlement
JPMorgan launched JPMD, a deposit token backed by bank balances, on the Base layer-2 network, enabling 24/7 settlement for its clients.Summary
JPMorgan has converted its permissioned JPM Coin system into JPMD, a deposit token representing insured balances at the bank, and deployed it onto Coinbase’s Ethereum layer-2, Base. This move allows for instant, 24/7 settlement between two JPMorgan clients using JPMD, effectively bypassing traditional banking hours governed by systems like Fedwire, which currently operates on a limited schedule. While this 24/7 capability is currently confined within JPMorgan’s perimeter—requiring counterparties to either issue compatible tokens or fall back to legacy infrastructure for external transfers—it offers corporate treasurers immediate liquidity. The decision to use Base signifies a major validation for Ethereum L2s carrying regulated bank flows, providing cheap blockspace and smart contract functionality while JPMorgan maintains control via allowlists. This initiative puts competitive pressure on other banks still reliant on batch settlement windows and positions JPMorgan to gain a significant service advantage unless industry-wide standards for tokenized deposits emerge.
(Source：CryptoSlate)