Key Takeaways:
- JPMorgan is piloting its deposit token, JPMD, on Coinbase’s Base blockchain, initially using US dollars.
- JPMD is designed for institutional use and operates within the regulated banking system, positioning it as a scalable, yield-capable alternative to stablecoins.
- Banking executives are reportedly concerned that yield-bearing deposit tokens like JPMD could disrupt traditional financial models.
JPMorgan Chase is piloting its new deposit token, JPMD, on Coinbase’s Base blockchain, marking a significant step in the bank’s blockchain expansion.
The trial involves a fixed amount of JPMD being transferred to Coinbase, starting with U.S. dollar transactions and potentially expanding to other currencies pending regulatory approval.
JPMorgan will launch a pilot for a token called JPMD that represents dollar deposits at the world’s biggest bank, as financial institutions deepen their push into the digital-asset sector. https://t.co/NcocJoyjNp
— Bloomberg (@business) June 17, 2025
Institutional clients on Coinbase will gain access to JPMD following the multi-month pilot.
This initiative follows JPMorgan’s trademark filing for JPMD, which includes services like digital asset trading, payment processing, and fund transfers.
Unlike stablecoins, deposit tokens are issued within regulated banking systems and represent digital claims on customer bank funds.
JPMD is a permissioned bank deposit token, issued by J.P. Morgan, and will be available exclusively to approved institutional clients.
— Base (@base) June 17, 2025
J.P. Morgan chose Base to take advantage of sub-second, sub-cent transactions for their clients, giving institutions access to near-instant…
Naveen Mallela, head of JPMorgan’s blockchain division Kinexys, stated that deposit tokens offer better scalability through a fractional reserve design and may eventually support interest payments – a feature uncommon among stablecoins.
Meanwhile, traditional banking figures are raising concerns.
NYU professor Austin Campbell noted that yield-bearing stablecoins are seen as a threat to traditional finance, suggesting the banking lobby is “panicking” over potential disruption to their dominance.
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