On June 18, JPMorgan announced the pilot launch of a deposit token called JPMD, deployed on the Coinbase-supported Base blockchain. It is expected that in the coming days, JPMorgan will transfer a certain amount of JPMD from its digital wallet to Coinbase, the largest cryptocurrency exchange in the U.S.
Initially, this token will only be used by JPMorgan's institutional clients, with plans to gradually expand to a broader user base and more currencies following regulatory approval in the U.S.
JPMD will pilot for several months and may have interest-earning capabilities in the future.
The launch of JPMD is not a hasty decision. As early as 2023, JPMorgan began researching the feasibility of deposit tokens in its blockchain division Kinexys.
Just one day before the announcement of the JPMD pilot, it was discovered that the bank applied for the 'JPMD' trademark, which covers features such as cryptocurrency trading, payments, and custody. At that time, there was speculation that this would signal JPMorgan's entry into the stablecoin market.