- JPMorgan launches USD deposit token JPMD for institutional clients on Base network.
- JPMD enables compliant, real-time onchain settlement for institutional payments.
- Banks worldwide explore tokenized deposits, with JPMorgan planning euro version JPME.
JPMorgan has completed the proof-of-concept for its blockchain-based deposit token, JPM Coin (JPMD), marking its official rollout for institutional clients on Base, an Ethereum Layer 2 network. The development follows a pilot program initiated in June under the bank’s blockchain division, Kinexys, and is now available for real-time, round-the-clock settlement.
According to Bloomberg, JPMorgan has officially launched its deposit token JPM Coin, initially available to institutional clients. The token represents U.S. dollar deposits held at the bank and enables 24/7 real-time transfers via Base, Coinbase’s associated public blockchain.…
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According to a statement, JPMD will enable institutional users to send and receive tokenized representations of existing bank deposits directly on Base. The system is designed to support onchain native payments with greater speed and efficiency than traditional methods. JPMorgan confirmed that major financial firms, including B2C2, Coinbase, and Mastercard, have successfully conducted test transactions using the token.
Deposit Token Designed for Institutional Use
The bank described JPMD as a USD-denominated deposit token that mirrors funds held in JPMorgan accounts. Unlike retail stablecoins, JPMD operates within a regulated banking framework and is limited to institutional clients that meet strict compliance and know-your-customer (KYC) requirements. This structure, according to JPMorgan, allows for faster interbank settlement while maintaining oversight consistent with existing financial regulations.
Naveen Mallela, global co-head of Kinexys by JPMorgan, stated that the initiative shows progress in enabling public blockchain transactions within the banking sector. “We’re moving the industry forward in transacting on public blockchains, beginning with Base,” he said.
Expansion and Future Development
A report from Bloomberg indicated that JPMorgan intends to expand JPMD to additional blockchain networks. The bank has also secured a trademark for “JPME,” suggesting plans for a potential euro-denominated deposit token. The introduction of JPME would broaden JPMorgan’s tokenized payment infrastructure beyond U.S. dollar operations.
Other global financial institutions are advancing similar tokenized deposit initiatives. On Monday, DBS and Kinexys announced plans to develop an interoperability framework that connects tokenized deposits across public and permissioned blockchains. Separately, BNY Mellon has been evaluating its own tokenized payment system, while major U.K. Lenders, including Barclays, Lloyds, and HSBC, are testing blockchain-based sterling deposits.
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About the Author: Peter Mwangi
