Digital asset and Kinexys by J.P. Morgan, announced their plans to collaborate on the issuance of the native JPM token – a digital version of U.S. dollars held at J.P. Morgan – onto a privately enabled blockchain network called Canton Network.
JPM Coin to be launched on Canton network
JPM Coin by Kinexys Digital Payments is the first bank-issued USD-denominated deposit token or JPMD, with the ability to make payments using a digital representation of J.P. Morgan USD deposits on a public distributed ledger.
Yuval Rooz, Co-Founder and CEO of Digital Asset said in the official statement, “By bringing JPM Coin natively to Canton, we’re establishing the foundation for modernizing the existing financial rails to facilitate the more efficient flow of capital, bridging traditional finance and digital infrastructure in a way that preserves privacy, compliance, and trust.”
The intent behind the collaboration is expressed as building the foundation for regulated, interoperable digital money that can move across easily within the financial market.
According to Naveen Mallela, Global Co-Head of Kinexys by J.P. Morgan, this collaboration moves the industry forward in transacting on public blockchains.Â
“JPM Coin delivers the security of bank-issued deposits and settlement, combined with the speed and innovation of 24/7, near real-time blockchain transactions. In bringing JPM Coin on to Canton, we can further increase efficiency and unlock liquidity,” he added.
What to expect?
The terms of the collaboration state that they’ll roll out their initiatives step by step over time, making sure each stage works properly before moving to the next. The initial focus will be on the development of technical and business frameworks behind the issuance, transfer, and near-instant redemption of JPM Coin on Canton.
Additionally, they will also explore the integrations of other Kinexys Digital Payments products, including J.P. Morgan’s Blockchain Deposit Accounts, which will expand the offerings and capabilities available to Canton ecosystem participants. This will also ensure that banks gain blockchain speed without giving up compliance or privacy.
