EddieJayonCrypto
17 Jun 25
JPMorgan will soon pilot JPMD, a dollar-denominated deposit token on Coinbase’s Base blockchain, enabling instant transfers for selected institutional users. JPMD, representing claims on bank deposits and distinct from stablecoins, operates within the fractional-reserve banking system, potentially e...
JPMorgan is launching a pilot for JPMD, a dollar-denominated deposit token on Coinbase’s Base blockchain, aimed at facilitating instant payments and settlements for institutional users. Unlike stablecoins, JPMD represents claims on bank deposits within the fractional-reserve banking system, potentially earning interest and qualifying for deposit insurance. This initiative enables fast, secure, and continuous money movement, reflecting JPMorgan’s vision of commercial banking moving on-chain.
The pilot will start with transferring a fixed amount of JPMD from JPMorgan’s digital wallet to Coinbase, allowing selected institutional clients to use the token for on-chain transactions. JPMorgan plans to run the trial for several months before expanding to other clients and currencies, subject to regulatory approval. The bank regards deposit tokens as a superior banking alternative to stablecoins and expects strong institutional demand, especially for cross-border settlement and liquidity management.
This effort aligns with growing blockchain experimentation by major banks amid evolving stablecoin regulations. With JPMorgan already clearing over $2 billion daily via its Kinexys Digital Payments network, the introduction of JPMD signals a pivotal shift toward faster, more efficient commercial banking operations integrated into blockchain technology.