CoinDesk Analysis: Banks are putting deposits on-chain through a permissioned system, with JPMorgan Chase launching JPMD to meet privacy and compliance requirements
CoinDesk analysis indicates that banks are putting deposits on-chain, but are choosing permissioned systems over open ones to meet privacy and compliance requirements. For example, JPMorgan Chase has launched JPMD (JPMorgan Deposit Token), a permissioned deposit token on the public Base blockchain. Tokenized deposits differ from stablecoins in that they are liabilities of regulated banks and represent an ongoing relationship with the bank, so banks must retain control over transfers to fulfill anti-money laundering (AML) and sanctions compliance obligations, and protect customer privacy. The long-term vision is to build a network of interoperable permissioned environments, rather than a fully open blockchain financial system.
Source:CoinDesk · Source Link
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