JPMorgan launched the JPMD token pilot to move real dollar deposits on Coinbase’s Base blockchain network for institutions.
The JPMD token will operate only for approved clients and offers fast settlement using traditional banking deposits.
JPMorgan selected the Base network to test secure onchain transfers using tokenized deposits in a controlled environment.
JPMorgan Chase has launched a pilot for its new deposit token, JPMD. The token will represent U.S. dollar deposits held at the bank. The test involves transferring a fixed amount of JPMD to Coinbase using the Base blockchain network.
https://twitter.com/base/status/1935055475252543823
Base is a Layer 2 Ethereum network built by Coinbase. JPMorgan selected Base due to its fast processing and low transaction fees. The goal is to explore faster, more secure money movement between institutional accounts.
The JPMD token is not available to the public. It will be accessible only to approved institutional clients. These clients can use the token to transfer funds in real time within a regulated system.
The token mirrors actual deposits held at JPMorgan. This allows institutions to move dollar value without leaving the traditional banking framework. The pilot is expected to run for several months as JPMorgan tests performance and compliance.
Integration with Base Supports Speed and Scale
JPMorgan chose the Base network to issue and move JPMD tokens. Base is known for handling high transaction volumes with low cost. It supports sub-second settlement and round-the-clock transfers.
This setup allows JPMorgan to process transactions more efficiently than legacy banking systems. The token aims to reduce settlement time and improve liquidity for large institutions. It also shows how traditional banks are adopting blockchain for core financial services.
The bank’s blockchain unit, Kinexys, is leading the pilot. Kinexys focuses on digital asset solutions for banks and their clients. The team will study how JPMD performs in payment, clearing, and settlement use cases.
JPMorgan also filed a trademark for JPMD. The filing includes services like asset trading, transfers, and digital payment processing. The bank is building tools to serve institutional clients in digital markets.
Deposit Tokens Gain Institutional Attention
JPMD differs from public stablecoins like USDC and USDT. It operates within the banking system and follows strict compliance rules. Only permissioned clients can hold and transfer JPMD.
Deposit tokens like JPMD are backed by actual funds in bank accounts. They allow banks to offer digital payment tools while keeping control over customer deposits. This approach avoids exposure to reserve risk. JPMorgan may expand the JPMD to support other currencies. The token may also offer interest in the future. This adds utility that most stablecoins do not provide.
The launch marks a move toward regulated digital finance. It signals rising demand for secure, blockchain-based payments in banking.
