Wall Street banking giant JPMorgan is taking its biggest step yet into public blockchain technology with the launch of its digital deposit token “JPMD” on Coinbase’s Base network.
The move follows a June 15 trademark application for “JPMD” and will begin with a pilot phase transferring tokenized U.S. dollar deposits from JPMorgan’s wallet to Coinbase.
JPMD is fully backed one-to-one by U.S. dollars and will initially be available to institutional clients only. Pending regulatory greenlight, broader access and support for additional currencies are expected.
JPMD: JPMorgan’s Blockchain-Backed Answer to Stablecoins
JPMD is structured as a permissioned digital deposit token, distinguishing it from fully decentralized stablecoins like USDT or USDC.
In a June 17 report from Bloomberg, JPMorgan explained:
The bank sees the token as a safer and compliant alternative to stablecoins, particularly at a time when traditional financial institutions are grappling with increasing competition from crypto-native payments and tokenized assets.
This isn’t JPMorgan’s first entry into blockchain. The bank already operates Kinexys, an in-house blockchain-based platform processing over $2 billion in daily tokenized payments, including foreign exchange and derivatives transactions.
Kinexys is integrated with JPMorgan’s Liink network for secure data sharing and validation across institutions.
Why JPMorgan Chose Coinbase Base for JPMD: A Middle Ground Blockchain
Rather than deploying JPMD on Ethereum or other fully permissionless networks, JPMorgan opted for Base, a Layer 2 blockchain developed by Coinbase.
While public, Base is only partially decentralized and governed by a Security Council, offering a structure that traditional financial institutions find more palatable.
This setup provides an avenue for communication and intervention, two things regulators and banks often find lacking in fully decentralized networks.
Base’s design presents a “middle path” between permissionless blockchains and private ledgers, which may help banks address regulatory scrutiny while taking advantage of public chains’ innovation.
JPMD’s launch comes just a day after the U.S. Senate passed the long-awaited GENIUS stablecoin bill.
Already, some institutions in various regions are reportedly witnessing outflows as clients migrate to digital alternatives that offer 24/7 settlement and lower transaction friction.
Source: VanEck Matthew SiegelWith stablecoins gaining traction as viable payment tools, tokens like JPMD may help banks defend their turf by offering compliant, blockchain-native alternatives under regulated frameworks.
JPMorgan’s Rapid Blockchain Expansion in 2025
JPMorgan’s Base experiment follows a string of blockchain-related developments in 2025.
Earlier this month, the bank began allowing select clients to use crypto ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT), as loan collateral.
It also announced plans to let clients buy Bitcoin, although custody will remain off-limits.
CEO Jamie Dimon, previously a vocal crypto skeptic, acknowledged during a recent investor briefing: “We’re going to allow you to buy it. We’re not going to custody it, but it’ll be in statements for clients.”
Adding fuel to this shift, a February 13F filing revealed a 69% jump in JPMorgan’s Bitcoin-related holdings, rising to $964,322.
The bank increased its IBIT exposure to 5,242 shares and boosted its position in Fidelity’s FBTC fund by 208%, signaling deeper institutional conviction in digital assets.
As real-world assets, from equities to bonds to currencies, move on-chain, traditional players are adapting their infrastructure to remain competitive in the digital era.
With more than $260 trillion in potential assets eligible for tokenization, the implications for capital markets are vast.
In fact, just yesterday, Coinbase sought approval from the U.S. Securities and Exchange Commission to offer tokenized equities, a move that could enable it to deliver equity trading services through blockchain technology.
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