My take on JP Morgan's deposit token on @coinbase base... Meet JPMD - “Stablecoin like” deposit token - Backed by deposits - token on the base network (the Ethereum L2 built by Coinbase). - Positioned as an alternative to stablecoins “JPMD” is a deposit token - Designed to offer many of the benefits of being on chain, but being linked to commercial bank money (which offers FDIC insurance). This token is “permissioned” (only available to JP Morgan’s institutional clients). They expect it to be used for on-chain digital asset settlement and cross border payments. 🧠This is clearly aimed at corporate treasurers who are stablecoin curious. Unquestionably, JP Morgan will have been getting questions “will you support stablecoins?” - “Can I use stablecoins through you?” This is their answer. 🧠 This is a compelling pitch to large corporates. Kinexsys + JPMD offers many of the benefits of stablecoins + backward compatibility with the banking system. 🧠 The downside of Kinexsys is that it is closed loop. - Kinexsys moves TRILLIONS annually, cross-border, 24/7 (it's actually insane) - But it's like having the world's fastest car that only works on one highway - Stablecoins work everywhere. That's the point. 🧠 Stablecoins are a bottom-up alternative that has expanded the TAM of payments. That’s why Stripe is investing so heavily, and volume growth is explosive. 🧠 Why launch JPMD on base if they have Kinexsys? JPMD is intended for wider use than institutional. Over time JPMD could compete with USDC or USDT for dollar usage as on chain finance grows in consumer and commercial payments use cases. 🧠 Every other bank will now try to copy this. They’re getting the same stablecoin questions from their clients and will wake up to this headline.