The on-chain financial era of Base has arrived

Recently, the U.S. government has officially recognized the compliance of crypto assets through legislation, breaking the previous regulatory vacuum. Against this backdrop, traditional finance and the crypto ecosystem are accelerating their integration.

Deposit Token Login to Base Chain

A large bank announced the launch of a pilot project called JPMD, which is an on-chain token representing customers' dollar bank deposits, based on a fractional reserve mechanism, and will be deployed on a public blockchain supported by a certain trading platform.

The executive of the blockchain department stated that the bank will complete its first JPMD transfer in the near future, paving the way for institutional clients to use the token for on-chain transactions. The pilot is expected to last several months, exploring efficient and secure institutional-grade trading tools.

Choosing to pilot the issuance of JPMD on this public chain not only demonstrates recognition of its security and efficiency, but also signifies that institutional clients may directly conduct on-chain fund settlement through this chain with the trading platform ecosystem in the future, injecting core liquidity into the "CeDeFi bridge."

Deposit Tokens vs Stablecoins

Although the launch of JPMD has sparked market speculation, the bank's executives emphasized that deposit tokens are superior to stablecoins for institutional users due to their basis in a fractional reserve mechanism, making them more scalable.

Deposit tokens represent actual dollar deposits in a customer's bank account, operating within the traditional banking system. In contrast, stablecoins are merely fiat currency mappings backed by cash equivalents, with legal status and operational logic that are more detached from the traditional financial system.

At the same time, the bank's executives have engaged in discussions with regulators on topics such as the migration of capital market instruments to public chains, involving various cutting-edge directions such as digital repurchase, digital debt instruments, and on-chain financing.

Tokenized Stock Trading Services

A certain trading platform is applying for a no-objection letter from regulatory authorities to launch tokenized stock trading services. If approved, it will be the first to achieve an integrated asset circulation closed loop of "stablecoin purchase → on-chain settlement → stock trading → rebate consumption," challenging the status of traditional brokerages.

Tokenized stocks promise faster settlements, longer trading hours, and lower costs. This move by the platform means that it aims to not only be the "Nasdaq" for crypto assets but also become the on-chain gateway for traditional securities trading.

This is the platform's latest move to expand beyond crypto assets, aiming to open new revenue streams and drive institutional adoption. Recently, the platform also launched a credit card and collaborated with payment companies to promote stablecoin payment applications.

On-chain Financial New Landscape

Whether it is on-chain tokens based on bank deposits or tokenized securities platforms, it indicates that on-chain finance is entering a period of institutional reconstruction driven by regulation, infrastructure, and mainstream financial institutions.

The passage of relevant legislation, the heated discussion of stablecoins, and the ongoing experiments by major institutions in on-chain market infrastructure mean that crypto finance is gradually embedding itself into the global financial market structure, with the boundaries between on-chain and off-chain being progressively broken down by these pioneers.