JPMorgan, one of the world’s largest financial institutions, is reportedly developing a blockchain-based solution for cross-border transactions. The system, however, won’t be available until the bank receives approval from U.S. regulators. The new deposit token, which will be first launched for corporate clients, will allow transactions to other banks and is suitable for different forms of settlements on a blockchain, including trades of tokenized securities. The product is also different from its JPM Coin, which already allows corporate clients to transfer dollars and euros across the financial institution.The deposit token will go through know-your-customer and anti-fraud processes, similar to the JPM Coin. Last year, the new token was piloted in a single transaction as part of the Project Guardian, a collaborative cross-industry effort pioneered by the Monetary Authority of Singapore (MAS). JPMorgan moves $10 trillion in transactions overall on a daily basis.JPMorgan has voiced its support for deposit tokens, noting that they may offer more stability and reliability compared to similar solutions, such as stablecoins and central bank digital currencies (CBDCs). The bank’s deposit token initiative not only expands its blockchain-based solutions, but also adds more competition for stablecoin issuers. PayPal recently launched its stablecoin PYUSD, prompting traditional competitors in the U.S. market, such as Circle, to expand the reach of its stablecoin USD Coin USDC to six new blockchains in an effort to boost adoption.

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Information	Details
Geography	North America
Countries	🇺🇸 🇸🇬
Sentiment	neutral
Relevance Score	9
People	None
Companies	Circle, JPMorgan, PayPal, Monetary Authority of Singapore (MAS), USD Coin USDC
Currencies	PayPal USD, US Dollar, Ethereum, COIN, Bitcoin
Securities	None