Commercial banking refers to the financial services provided by institutions that accept deposits, make loans, and offer other banking services to individuals and businesses. These banks act as intermediaries in the financial system, facilitating payments, credit provision, and wealth management. Their operations are foundational to modern economic activity, supporting trade and investment.
Context
The interaction between commercial banking and the digital asset space is a subject of intense scrutiny and evolving policy. Traditional financial institutions are increasingly exploring the integration of blockchain technology and digital currencies into their service offerings, while also navigating regulatory hurdles and concerns about risk management. The potential for central bank digital currencies (CBDCs) further complicates the future role and operational model of commercial banks.
Tokenizing commercial bank deposits on a public Layer 2 network provides institutional clients with instant, 24/7 settlement finality, drastically improving capital efficiency.
J.P. Morgan leverages Base, an Ethereum Layer 2, to pilot JPMD, a USD deposit token, enabling institutional clients with 24/7, near-instant settlement for enhanced operational efficiency and liquidity management.
JP Morgan leverages Base for JPMD deposit tokens, enabling institutional clients to achieve near-instantaneous payment settlement and enhanced capital efficiency.
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