JPMorgan's new trademark application covers a wide range of services. Will it launch a stablecoin?
JPMorgan Chase, the largest bank in the US, submitted a trademark application named 'JPMD' to the US Patent and Trademark Office (USPTO) on Sunday, sparking widespread speculation in the market about the bank potentially launching a stablecoin. According to the application documents dated June 16, JPMD will offer services including 'digital asset trading, exchange, transfer, and payment services' as well as 'digital asset issuance.'
Image source: USPTO. JPMorgan submitted a trademark application named 'JPMD' to the US Patent and Trademark Office (USPTO) on Sunday.
The trademark application describes a wide range of services, including digital asset trading, electronic funds transfer, payment processing, real-time token trading, digital asset custody, and securities brokerage. JPMorgan also seeks to cover secure online financial transaction services related to digital currencies and blockchain technology. This application belongs to the service trademark category, indicating that it may apply to services and platforms rather than physical products.
Although the application documents do not explicitly use the term 'stablecoin,' the described services include concepts such as 'virtual currency,' 'digital tokens,' 'payment tokens,' and 'blockchain-supported currency,' which are typically associated with stablecoin ecosystems and digital exchanges. Industry experts suggest that the 'D' in JPMD likely stands for 'Dollar,' implying that this could be an abbreviation for 'JPMorgan Dollar,' similar to the naming convention of Circle's dollar stablecoin ($USDC).
The banking industry's blockchain layout accelerates, and the regulatory environment is becoming clearer.
JPMorgan's trademark application comes at a critical moment as the US stablecoin regulatory bill (referred to as the GENIUS Act) is about to pass. The bill was passed in the Senate last week with a vote of 68 to 30 to end debate, and the final vote is expected to take place today (6/17). If the bill passes, it will provide a legal framework for financial institutions to create stablecoin products under federal regulation.
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(The Wall Street Journal) reported on May 22 that JPMorgan, along with major banks such as Bank of America, Citigroup, and Wells Fargo, is discussing a joint stablecoin project. The report indicated that these banks hope to compete directly with native cryptocurrency stablecoin issuers and view stablecoins as a strategic tool to accelerate everyday and cross-border payments. Sam Kazemian, founder of Frax Finance, confirmed these discussions and stated that negotiations have gone beyond the early speculation phase.
The current total market capitalization of the stablecoin market has reached $251.7 billion, led by Tether's $USDT and Circle's $USDC, with market caps of $156.3 billion and $61.3 billion, respectively. In May alone, the top eight stablecoins recorded a trading volume of $4 trillion, demonstrating strong demand for such digital assets.
JPMorgan has extensive experience in blockchain and is shifting its digital asset strategy.
JPMorgan is no stranger to the blockchain industry. The bank launched its blockchain department, Onyx (renamed Kinexys last year), back in 2020, becoming one of the earliest pioneers among major US financial institutions to experiment with distributed ledger technology. The platform has processed over $1.5 trillion in blockchain interbank payments, with a daily transaction volume exceeding $2 billion.
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JPMorgan also operates JPM Coin, a private stablecoin pegged 1:1 to the US dollar, British pound, or euro, specifically for internal fund transfers for institutional clients. The bank is also an early participant in the tokenization industry, launching the Tokenized Collateral Network in 2022, which allows users to use tokenized assets as collateral and transfer ownership almost instantly.
Notably, JPMorgan recently decided to accept spot Bitcoin exchange-traded funds (ETFs) as collateral for loans, starting with BlackRock's iShares Bitcoin Trust (IBIT) and expanding functionalities to trading and wealth management clients. The bank will also include digital asset holdings when calculating customer net worth, treating them on par with stocks, vehicles, and artworks during credit reviews.
Traditional financial institutions are competing to enter, intensifying the competition for digital assets.
The JPMD trademark application reflects the growing interest of traditional financial institutions in stablecoins. In addition to JPMorgan, large companies such as Amazon and Walmart are also reportedly considering launching their own dollar-pegged tokens. These initiatives indicate that interest from the private sector in digital currencies is increasing as regulatory clarity improves.
Further Reading
Walmart and Amazon are considering issuing stablecoins! Why are major companies jumping into the stablecoin race?
Cryptocurrency custodian BitGo announced the launch of its stablecoin $USDS last fall, while the World Liberty project, supported by the Trump family, announced in March this year that it would launch $USD1, a dollar-pegged token backed by US Treasury bonds, US dollars, and cash equivalents. These developments indicate that multiple companies are entering the stablecoin industry, hoping to gain a first-mover advantage as restrictions on digital assets are relaxed before the passage of the GENIUS Act.
Despite JPMorgan CEO Jamie Dimon long criticizing Bitcoin, he stated last September that JPMorgan 'might be one of the largest users of blockchain technology.' The bank recently allowed customers to purchase Bitcoin and included BTC ETFs in the range of customer loan collateral, indicating a significant shift in its attitude toward digital assets. This JPMD trademark application, along with the Bitcoin collateral plan, symbolizes the largest bank in the US's broader openness to the cryptocurrency industry.
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'JPMorgan applies for JPMD crypto platform trademark! Will have trading business, what is the investment bank setting up?' This article was originally published in 'Crypto City.'
