These features provide practical convenience for asset managers and investors beyond conventional legal stability. For example, assets operating on a public blockchain can be redeemed within 24 hours using JPMD as a payment tool. Compared to the need for a separate “withdrawal” path to convert stablecoins into fiat currency, JPMD supports instant conversion into cash. In addition, JPMD also provides deposit protection and interest income potential, thereby enhancing the on chain asset management ecosystem.
JPMorgan Chase launched a deposit token in response to the capital flow and new income structure surrounding stablecoins. For example, Tether generates approximately $13 billion in revenue annually, while Circle also earns billions of dollars by managing safe assets such as US government bonds. The income model of these stablecoins is different from the traditional loan deposit spread, but generates a similar return structure through customer funds.
BINANCE:https://binance.com/join?ref=E2222
GATE:https://www.gate.com/signup/FFFFNNNN
HTX:https://www.htx.com/invite/en-us/1f?invite_code=aaaee
Of course, JPMD also has limitations. Its design fully complies with the existing financial regulatory framework, making it difficult to achieve complete decentralization and openness of blockchain. At present, this service is only available to institutional clients. Nevertheless, JPMD provides a practical strategy for traditional financial institutions to enter public blockchain based financial services while maintaining stability and compliance. Many industry observers believe that JPMD represents the ongoing evolution of structural connections between traditional finance and on chain ecosystems.