Which L2 hosts JPM Coin settlement?

TLDR

JPM Coin settlement runs on Base, Coinbases Ethereum Layer 2, for institutional onchain payments and transfers Base.

1. It enables 24/7 near?instant settlement for clients on Base near?instant settlement.
2. JPM Coin is a regulated deposit token designed for institutions, not a retail stablecoin deposit token.
3. Pilots included B2C2, Coinbase, and Mastercard before rollout on Base pilot participants.

Deep Dive

1. Base As The Settlement Rail

JPMorgan chose Base for public?chain settlement to combine Ethereums security with L2 speed and cost efficiency Base.

1. Base is an Ethereum L2 that improves throughput while inheriting Ethereums security guarantees Base details.
2. JPM Coin on Base allows institutional transfers to clear at any hour, removing banking?hours constraints 24/7 settlement.

2. Deposit Token, Not A Stablecoin

JPM Coin represents bank deposits at JPMorgan, with KYC and banking compliance, rather than reserves in a smart contract deposit token.

1. The design targets corporate and institutional users, aligning with regulatory and banking requirements institutional focus.
2. The bank has discussed deposit tokens as potentially yield?bearing for institutions, distinct from typical stablecoins yield context.

3. Piloted Before Rollout

Before going live, JPM Coin completed pilots with B2C2, Coinbase, and Mastercard on Base pilot participants.

1. The pilots validated functionality and settlement speed for wholesale and cross?institution transfers pilot context.
2. Reports note plans to expand to additional chains and versions over time, pending approvals expansion plans.

Conclusion

JPM Coin settlement is hosted on Base, aligning regulated bank money with public?chain performance for institutional payments Base. The deposit?token model emphasizes compliance and programmability, and successful pilots hint at wider, multi?chain expansion as approvals progress.