JPMorgan Chase is set to launch a pilot program for a new dollar-backed digital deposit token, marking a significant step in bringing traditional banking infrastructure onto public blockchains.
The trial, planned to start in the days ahead, will be held on Coinbase’s Base blockchain and will invite a mix of institutional users, Coinbase’s co-head Naveen Mallela of the JPMorgan blockchain team said to Bloomberg.
Coinbase to Host JPMorgan’s JPMD Pilot
The new coin, to be referred to as JPMD, will have a direct claim over deposits held at the JPMorgan which makes it different with stablecoins that are secured with other external reserves such as U.S. Treasuries.
As a pilot, a predetermined quantity of JPMD will be moved out of JPMorgan digital wallet to Coinbase. The token will then be used by institutional clients of Coinbase as the means of on-chain payments and settlements.
Compared to typical stablecoins, including USDC or USDT, JPMD will exist in the current fractional-reserve banking system. It implies that the tokens holders will have the opportunity of earning interests and exposure to deposit insurance which is uncharacteristic of conventional crypto stablecoins.
Base Confirms JPMD Launch on Public Blockchain
Mallela characterized deposit tokens as an example of a better solution to institutions; the reason being that it fits well into the regular financial systems and other banking regulations.
Noting that JPMorgan has internal research suggesting that more than 90% of the current circulating money is already in commercial bank accounts, he explained, they are commercial bank money, and they are on the verge of becoming the dominant form of digital value.
Base, Coinbase’s Ethereum Layer 2 blockchain, confirmed the partnership on June 17. In a statement, the platform highlighted the token’s groundbreaking nature:
“It will be the first token of its kind on a public blockchain, enabling fast, secure, 24/7 money movement between trusted parties. […] Moving money should take seconds, not days. Commercial banking is coming on-chain.”
J.P. Morgan is bringing banking onchain.
Kinexys by @jpmorgan is launching JPMD, a USD deposit token for institutional clients, on Base.
It will be the first token of its kind on a public blockchain, enabling fast, secure, 24/7 money movement between trusted parties.
— Base (@base) June 17, 2025
JPMorgan Files Trademark for JPMD Token
The activity is paired with a trademark filing on June 16 of JPMorgan, which registered the name JPMD, including digital trading, payment services, custody, and transfers of tokens in real-time, indicating that there is long-term strategic design to the project.
This pilot should take several months and only a few institutional members can participate. As long as regulatory approval goes through and pilot is successful, JPMorgan will reach more client segments and enter multi-currency deposit tokens. This would also establish JPMD as a major tool of cross-border settlements and on-chain liquidity handling.
JPMorgan Builds on Kinexys Blockchain Success
The initiative is in line with the overall digital payments effort of JPMorgan. Its Kinexys Digital Payments Network which was initially referred to as JPM Coin already clears more than 2 billion dollars a day in institutional accounts.
This initiative of JPMorgan is a part of a broader institutional trend of blockchain experimentation as legislators seek to establish regulations around the use of stablecoins.
Recently financial giants such as Bank of America and DTCC have stepped up blockchain pilots with U.S. legislators urging stablecoin regulations to address reserve coverage and auditable transparency.
Conclusion
The JPMD pilot launch of JPMorgan is a sign of a paradigm shift towards blending the conventional banking with the blockchain infrastructure. The token may become one of the landmarks of digital settlement as regulatory detail is clarified and institutional demand increases. As it gains broader adoption, JPMD could revolutionize the way money in a decentralized, 24/7 financial ecosystem works, even in commercial banks.
Follow us on Twitter and LinkedIn, and join our Telegram channel to be instantly informed about breaking news!
FAQs
1. What is JPMD?
JPMD is a deposit token backed by JPMorgan bank deposits, unlike stablecoins backed by external reserves.
2. Who can use JPMD now?
Only select institutional clients on Coinbase’s Base blockchain during the pilot phase.
3. Why launch JPMD on Base?
To enable fast, secure, 24/7 on-chain payments using a public blockchain.
4. How does JPMD fit JPMorgan’s strategy?
It expands JPMorgan’s blockchain efforts and supports future cross-border, on-chain settlements.
Glossary of Key Terms
JPMD
JPMorgan’s deposit token is backed by bank deposits and used for blockchain payments.
Deposit Token
A digital token backed by bank deposits, unlike stablecoins.
Base Blockchain
Coinbase’s Ethereum Layer 2 network hosting JPMD.
Kinexys Network
JPMorgan’s internal blockchain clears $ 2 B+ daily.
On-Chain Transaction
A secure, blockchain-recorded transaction.
Cross-Border Settlement
Settling payments between countries, now explored via blockchain.
Liquidity Management
Managing funds to ensure smooth payments and operations.
References
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
For advertising inquiries, please email . [email protected] or Telegram
