JPMorgan Chase has initiated a pilot for its JPMD deposit token, deployed on Coinbase-backed Base blockchain, with potential interest-bearing features in future phases. This move follows years of research—JPMorgan's blockchain unit Kinexys began exploring deposit tokens as early as 2023.

On June 18, JPMorgan announced the pilot launch of JPMD, a deposit token hosted on Base blockchain. The bank will soon transfer an initial amount of JPMD from its digital wallet to Coinbase, the largest U.S. crypto exchange.

• Initial Phase: Exclusive to JPMorgan’s institutional clients.

• Future Expansion: Broader user access and multi-currency support pending U.S. regulatory approval.

The pilot will run for several months, with potential upgrades like interest accrual later.

JPMorgan deliberately avoided entering the "overcrowded" stablecoin market, opting instead for a regulated deposit token model.

Naveen Mallela, Global Co-Head of Kinexys, explained to Bloomberg:

• JPMD transactions will occur on Base, denominated in USD.

• The token leverages fractional-reserve banking, making it "more scalable than stablecoins."

• Future features may include interest payments and deposit insurance—unavailable in most stablecoins.

Behind the Scenes:

• JPMorgan filed a "JPMD" trademark days before the announcement, covering crypto trading, payments, and custody.

• The bank’s existing Kinexys Digital Payments (formerly JPM Coin) handles $2B daily transactions, though this is a fraction of its $10T/day traditional payment volume.

A prior JPMorgan whitepaper outlined key distinctions:

Executive Skepticism:

• Emma Lovett, JPMorgan MD, warned at DigiAssets 2025: "The stablecoin market risks becoming fragmented as firms push proprietary tokens."

• She predicted a shakeout: "In 2–3 years, we’ll see which stablecoins survive."

The JPMD pilot coincides with:

1. U.S. Regulatory Momentum:

   • The GENIUS Act (passed 68–30 in Senate) mandates 1:1 reserves, AML controls, and consumer protections for stablecoins.

2. Global Competition:

   • EU risks falling behind as U.S./Asia lead digital asset adoption (Franklin Templeton exec).

3. Banking Sector Moves:

   • Santander, Deutsche Bank, and PayPal are testing blockchain-based settlements.

Base Blockchain’s Role:

• "Transfers should take seconds, not days," declared Base on X. "Commercial banks are going on-chain."

• Regulatory Hurdles: JPMD’s expansion hinges on approvals for interest-bearing features and multi-currency support.

• Market Impact: If successful, deposit tokens could redefine institutional crypto liquidity—without destabilizing traditional banking.

Bottom Line: JPMorgan isn’t just experimenting with blockchain; it’s reengineering money itself for the digital age.

JPMorgan Chase has initiated a pilot for its JPMD deposit token, deployed on Coinbase-backed Base blockchain, with potential interest-bearing features in future phases. This move follows years of research—JPMorgan's blockchain unit Kinexys began exploring deposit tokens as early as 2023.

On June 18, JPMorgan announced the pilot launch of JPMD, a deposit token hosted on Base blockchain. The bank will soon transfer an initial amount of JPMD from its digital wallet to Coinbase, the largest U.S. crypto exchange.

• Initial Phase: Exclusive to JPMorgan’s institutional clients.

• Future Expansion: Broader user access and multi-currency support pending U.S. regulatory approval.

The pilot will run for several months, with potential upgrades like interest accrual later.

JPMorgan deliberately avoided entering the "overcrowded" stablecoin market, opting instead for a regulated deposit token model.

Naveen Mallela, Global Co-Head of Kinexys, explained to Bloomberg:

• JPMD transactions will occur on Base, denominated in USD.

• The token leverages fractional-reserve banking, making it "more scalable than stablecoins."

• Future features may include interest payments and deposit insurance—unavailable in most stablecoins.

Behind the Scenes:

• JPMorgan filed a "JPMD" trademark days before the announcement, covering crypto trading, payments, and custody.

• The bank’s existing Kinexys Digital Payments (formerly JPM Coin) handles $2B daily transactions, though this is a fraction of its $10T/day traditional payment volume.

A prior JPMorgan whitepaper outlined key distinctions:

Executive Skepticism:

• Emma Lovett, JPMorgan MD, warned at DigiAssets 2025: "The stablecoin market risks becoming fragmented as firms push proprietary tokens."

• She predicted a shakeout: "In 2–3 years, we’ll see which stablecoins survive."

The JPMD pilot coincides with:

1. U.S. Regulatory Momentum:

   • The GENIUS Act (passed 68–30 in Senate) mandates 1:1 reserves, AML controls, and consumer protections for stablecoins.

2. Global Competition:

   • EU risks falling behind as U.S./Asia lead digital asset adoption (Franklin Templeton exec).

3. Banking Sector Moves:

   • Santander, Deutsche Bank, and PayPal are testing blockchain-based settlements.

Base Blockchain’s Role:

• "Transfers should take seconds, not days," declared Base on X. "Commercial banks are going on-chain."

• Regulatory Hurdles: JPMD’s expansion hinges on approvals for interest-bearing features and multi-currency support.

• Market Impact: If successful, deposit tokens could redefine institutional crypto liquidity—without destabilizing traditional banking.

Bottom Line: JPMorgan isn’t just experimenting with blockchain; it’s reengineering money itself for the digital age.