JPMorgan Chase and Coinbase jointly launch JPMD deposit token pilot project, Base is the first choice for testing

JP Morgan's Blockchain Platform Kinexys Co-Head Naveen Mallela Announces Deposit Token JPMD Pilot on Coinbase's Base Chain Naveen Mallela, co-head of JP Morgan's blockchain platform Kinexys, announced this morning (6/18) that they will collaborate with the well-known exchange Coinbase to launch a pilot program for the deposit token JPMD, to be deployed and tested on the Base chain. He emphasized: "This is the first time a commercial bank has placed a deposit token on a public blockchain." Holding Deposit Token JPMD, Users Can Earn Interest A deposit token is a transferable digital currency that "tokenizes" a user's bank deposits, enabling instant settlement on-chain. Mallela stated that JPMD represents users' claim to JP Morgan's physical deposits, similar to a checking account, with future interest-earning potential. He noted that deposit tokens are "superior" to stablecoins because they are built on traditional banks' fractional reserve system and enjoy deposit insurance protection, which current mainstream stablecoins cannot achieve. JPMD Will Be Tested on Base, Targeting Institutional Users JP Morgan, which recently submitted the "JPMD" trademark application, is planning to deploy its deposit token JPMD pilot program. Mallela mentioned that in a few days, they will transfer a fixed amount of JPMD from their wallet to Coinbase's Base blockchain for testing, primarily serving their institutional users. Coinbase's institutional clients may also have the opportunity to use JPMD for transactions in the future. He added that JPMD will be denominated in "US dollars", marking JP Morgan's first transfer of a deposit token product to an L2 for testing. The pilot program will last several months, with potential expansion to more currencies and users pending regulatory approval. Currently, Base is one of the most popular Ethereum L2 chains, with a total locked value of approximately $3.8 billion, primarily attracting meme coins and various DeFi projects. Kinexys Payment Platform Will Continue to Expand JP Morgan has previously launched the blockchain payment platform Kinexys and issued its own stablecoin JPM Coin for settling bank transaction businesses, processing over $1.5 trillion in total transactions to date. JPM Coin is designed with a 1:1 fiat anchoring method, currently corresponding to US dollars, British pounds, and euros, primarily used for transactions and clearing services between large institutions. Mallela indicated that Kinexys will continue to expand, with the newly launched JPMD deposit token targeting institutional users seeking a "bank-backed" alternative to stablecoins. JP Morgan Sees Deposit Tokens Becoming Mainstream Years ago, JP Morgan predicted in a white paper: "Deposit tokens will become a widely used form of currency in the digital asset ecosystem, just like over 90% of circulating money today exists in the form of bank deposits."

Toggle

Does Eyenovia Embrace Hyperliquid: Validation or Hype?

Eye medication digital technology company Eyenovia (stock code: EYEN) announced yesterday that it has completed a $50 million private investment in public equity (PIPE), which will be used to establish its first cryptocurrency reserve, focusing on the high-growth potential Hyperliquid native token HYPE, even exceeding the company's market value of $20 million.

This transaction is limited to institutional investors, with the company issuing 15.4 million convertible preferred shares and warrants for 30.8 million common shares, both with a conversion and exercise price of $3.25 per share. If all warrants are subscribed, it could attract up to $150 million in additional funding.

To implement this transformation strategy, the company has appointed Hyunsu Jung as the new investment director and board member, simultaneously announcing that the company name and stock ticker will change to "Hyperion DeFi" and "HYPD".

(VanEck Reveals Discount Concerns for Bitcoin Reserve Companies: Issuing New Shares Will Only Dilute Shareholder Value Faster)

CEO Sees Promise in Hyperliquid: Staking HYPE for Passive Income Stream

Eyenovia stated that it will use these funds to purchase over 1 million HYPE tokens, becoming one of the largest global holders, and plans to participate in staking validation on Hyperliquid, with custody managed by Anchorage Digital. The company's CEO Michael Rowe stated:

This is not just an investment decision, but a big step in seeking diverse returns for shareholders and embracing the blockchain revolution.

The new investment director Jung added: "We believe HYPE is one of the strongest and most growth-potential digital assets currently."

(Could Hyperliquid Become a Money Laundering Tool Attracting Regulatory Scrutiny? Security Team: James Wynn is Also Like-Minded)

Examining HYPE Price Surge: Eyenovia Stock Drops 86% in One Year

With Hyperliquid recently rising to become the 8th largest L1 in global TVL, and HYPE reaching the 13th largest market cap in cryptocurrencies, its on-chain order book DEX trading volume and active users continue to rapidly increase. However, the EYEN stock price seems less impressive.

Although the HYPE reserve caused EYEN stock to surge 134% in a single day, the company has already declined 40.3% this year and 86.2% in the past year, with a total drop of 99% since its 2018 listing. Even if it follows the trend of crypto reserves, if its core business continues to incur losses, recovery may be difficult.

(Not Every Company Can Be MicroStrategy: Examining Risks of Crypto Reserve Companies from Sharplink's 70% Plunge)

Continuing Core Business, Eyenovia Builds Dual-Engine Growth Model

Eyenovia emphasizes that despite its significant entry into the crypto field, it has not deviated from its core medical business, including developing innovative treatment devices like UFD for dry eye syndrome patients. The CEO stated that they will steadily advance with a "dual-engine" operational model combining medical technology and crypto investments as part of their Web3 transformation strategy, providing shareholders with richer value sources.