Market News

JPMorgan Launches USD-Backed Token as Coinbase Integrates Wrapped Cardano and Litecoin

JPMorgan, the financial institution giant, is set to debut a US dollar-backed deposit token called JMPD on Coinbase’s Layer-2 scaling solution, Base.

This token will be issued through JPMorgan's blockchain unit, Kinexys, and is designed to cater exclusively to institutional clients.

Each JMPD token is backed 1:1 by USD deposits, merging the efficiencies of on-chain finance with the regulatory compliance expected from established banks.

The move positions JPMorgan within a growing ecosystem of over 200 financial entities utilizing Coinbase’s crypto-as-a-service platform.

By enabling instant and low-cost transactions on-chain, the bank aims to revolutionize institutional payment processing.

In addition to this, Coinbase has announced support for wrapped versions of Cardano (ADA) and Litecoin (LTC), now available on its platform.

The wrapped tokens, known as cbADA and cbLTC, are ERC-20 tokens backed 1:1 by the respective cryptocurrencies, held securely by Coinbase.

This development is part of Coinbase's strategy to enhance interoperability within the decentralized finance (DeFi) sector.

The integration of Cardano and Litecoin signifies a significant step toward uniting disparate blockchain ecosystems.

As cryptocurrency continues to evolve, these advancements reflect the increasing convergence of traditional finance with innovative digital assets.