JPMorgan Chase will test the JPMD deposit token on the Base blockchain

According to Bloomberg on June 17, JPMorgan Chase is about to test a USD-denominated deposit token, JPMD, on Coinbase's Base blockchain. This token will be transferred from the bank's digital wallet to Coinbase for on-chain payments and settlements for certain institutional clients.

JPMD is different from stablecoins; it represents real deposits held at the bank, which may earn interest and be insured. If the test is successful and receives regulatory approval, JPMorgan Chase plans to expand its issuance in the coming months and support more currencies.

Base confirmed this collaboration, stating that JPMD will be the first of its kind to launch on a public blockchain.