JPMorgan is set to test a new digital deposit token, JPMD, on Coinbase’s Base blockchain, a move that expands the bank’s blockchain footprint beyond internal system.
As reported by Bloomberg on June 17, the pilot will see a fixed amount of JPMD, backed one-for-one by U.S. dollar deposits, transferred from JPMorgan’s wallet to Coinbase. The token will initially be available to institutional clients for transactions, with plans to broaden access and support other currencies pending regulatory approval.
The launch marks a significant evolution in JPMorgan’s use of blockchain technology. The bank already operates Kinexys, its in-house platform for digital payments and tokenized assets. Kinexys processes over $2 billion in daily payments and supports tokenized foreign exchange, derivatives, and data validation via its Liink network.
The JPMD pilot extends this infrastructure to the public blockchain space for the first time. Unlike stablecoins, deposit tokens are issued by regulated banks and represent a direct claim on deposits. JPMorgan sees them as more secure and scalable for institutional use.
