“We used to be a proper country” - Jamie Dimon, probably
So it appears that Jamie Dimon finally realized you can’t call crypto “rat poison” forever if you want a seat at the cool kids’ table. Which is why now, JPMorgan has officially dropped the JPMD, a dollar deposit token, straight onto Base… a.k.a. The blockchain Coinbase built for people who think Ethereum’s gas fees are a hate crime. If you listen closely, you can hear a million crypto mouth breathers chanting “U.S.A!” in perfect harmony.
(Source: Giphy)
In short, this is a perfect example of Wall Street, but make it Blockchain: JPMD is basically a digital IOU for dollars, minted by the world’s most uptight bank and now living rent-free on a public blockchain. Coinbase gets the honor of holding the first batch… because if you’re going to LARP as a fintech innovator, then you might as well do it with the platform most likely to get a subpoena before breakfast LOL (sorry not sorry).
To start, JPMD will only be available to “institutional clients”, think people who have a Bloomberg Terminal and a cocaine line item in their personal budget sheets. However, the plan is to open it up wider, pending regulatory approval and probably only after they’ve figured out how to charge you for it. Regardless though, this is a BFD mainly because this is the first time a major US bank is putting commercial money on a public chain instead of its own walled garden.
(Source: Bloomberg)
And yet, what’s the point, you ask? Apparently, deposit tokens like JPMD are the “superior alternative to stablecoins”, mostly because they come with things like deposit insurance and the warm, suffocating embrace of the US banking system. Unlike the stablecoins you bought during your “crypto will save us from the Fed” phase, these could one day be interest-bearing, so you too can earn 0.04% while watching your savings evaporate from inflation in real-time. As for JPMorgan, they claim it’s all about scalability and safety. To which I say, is kind of funny coming from the fat cats who literally invented the credit default swap infestation of the late 2000s.
(Source: PYMNTS)
But, but, but… why now? Well, blame congress (always a safe bet). With the Genius Act inching forward, banks are finally getting the regulatory ‘go ahead’ to stop pretending they don’t have a Phantom wallet hidden under the mattress. JPMorgan’s already used blockchain to move billions via its Kinexys network (formerly known as JPM Coin, rebranded courtesy of some consultant who definitely overbilled). But that’s still a bean counting error compared to the $10 trillion JPM shoves around daily. Now, with JPMD, they want a slice of the $4 billion locked up on Base… which is currently the Layer 2 playground of memecoin degens and people who think “yield farming” is a career path.
(Source: X)
But again, before you get too excited, JPMD is still strictly permissioned. Translation: enjoy watching from the glass, plebs. It’s only for their clients, at least until Jamie Dimon decides he’s ready to let retail investors cook. But again, given his recent “I’d rather kick puppies than let JPMorgan customers buy bitcoin” energy, don’t hold your breath on a timeline.
In the end, this is peak JPMorgan: pretend to hate crypto, then show up to the party with a $5,000 suit and a public chain deposit token. And if you’re wondering why the world’s most powerful bank is suddenly so thirsty for blockchain clout, just remember: nothing gets Jamie Dimon moving faster than the thought of someone else skimming fees off a transaction.
(Source: Dealbreaker)
So yeah, that’s where we are at at the moment. Of course, we’ll see how this all shakes out for JPMorgan, and only time will tell when they’ll open it up for retail investors… but regardless, the fact that crypto is now being adopted by even the most Wall Street pessimists should tell you how big this is. Meaning, keep your eyes on this story and place your bets accordingly. Until next time, friends…
At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.
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