- JPMorgan is launching JPMD, a permissioned deposit token for institutional clients, on Coinbase’s Base blockchain.
- JPMD will allow 24/7 settlements and interest payments, offering a more bank-native alternative to public stablecoins.
- Unlike traditional stablecoins, JPMD is tightly integrated with JPMorgan’s systems and only accessible to big players—not the general public.
JPMorgan Chase is stepping deeper into the crypto game—this time with its own digital token called JPMD. But don’t call it a stablecoin just yet. The bank confirmed to CNBC that JPMD is actually a “deposit token,” and it’s being built on Coinbase’s Base blockchain, which itself runs on Ethereum.
Unlike public stablecoins like USDC or USDT, JPMD is strictly for institutional clients. It’s a permissioned token, so retail investors are out of luck here. The idea? To let JPMorgan’s clients settle payments 24/7, and eventually even earn interest on those digital deposits.
A Bridge Between Banks and Blockchain
Naveen Mallela, co-head of Kinexys (that’s JPM’s blockchain unit), explained it like this: JPMD could help big institutions handle on-chain asset settlement and cross-border transactions more efficiently. And since it’s interest-bearing, it could blend more naturally with traditional banking products.
One of the big perks of using a deposit token instead of a stablecoin? Speed and familiarity. JPMorgan says it keeps the experience tight with existing banking infrastructure while also unlocking crypto-native speed and programmability.
Not Your Average Stablecoin
Sure, JPMD acts a bit like a stablecoin, but it’s not meant for the public and doesn’t quite fit that mold. Stablecoins like USDC and USDT dominate the market with a combined valuation over $260 billion. But most of them operate in regulatory gray zones in the U.S.—at least for now.
That might change soon. Lawmakers are eyeing the GENIUS Act, which could introduce new rules for how stablecoins are issued and managed. Meanwhile, Europe already regulates these assets under MiCA, and the U.K. is cooking up its own rulebook too.
Why Coinbase?
Some folks wondered why JPMorgan chose Coinbase for this. The bank said Coinbase is already a longtime partner and a trusted player in crypto. That familiarity made it an easy choice for deploying JPMD on Base.
And people are already buzzing. Mallela said they’ve seen “preliminary interest from large institutional players” looking for native on-chain cash from big-name banks. Plus, a trademark filing for JPMD that popped up on Monday fueled speculation the bank was preparing something major. Turns out, they were.
While JPMD shares some DNA with stablecoins, JPMorgan insists this is a different breed entirely—a token tied to deposits, not just a digital dollar clone.
