JPMorgan Launches Dollar-Denominated Deposit Token JPMD on Coinbase’s Base Blockchain

JPMorgan is set to pilot a dollar-denominated deposit token called JPMD on Coinbase’s Base blockchain within days. This initiative, announced by global blockchain division co-head Naveen Mallela, aims to facilitate instant dollar transfers for institutional users. The pilot will involve transferring a fixed amount of JPMD from JPMorgan’s digital wallet to Coinbase, making the token available for payments and settlements. Coinbase’s institutional clients will then use JPMD for on-chain transactions, with the trial expected to run for several months before potentially expanding to other client segments and additional currency denominations, pending regulatory approval.

JPMD represents a claim on deposits held at the bank and differs from stablecoins that rely on segregated securities reserves. Mallela described deposit tokens as a superior alternative for institutions because they operate within the fractional-reserve banking system, may earn interest, and could qualify for deposit insurance. JPMorgan already clears more than $2 billion a day over its private Kinexys Digital Payments network, formerly known as JPM Coin.

This announcement follows JPMorgan’s recent trademark filing for “JPMD,” which covers trading, transfer, and payment services tied to digital tokens. The filing includes electronic fund transfers, custody, and real-time token trading, all under the bank’s ownership. Coinbase confirmed the collaboration, highlighting that JPMD will be the first token of its kind on a public blockchain, enabling fast, secure, 24/7 money movement between trusted parties. According to Mallela, JPMorgan’s whitepaper on deposit tokens argues that commercial bank money already accounts for more than 90% of circulating funds and will likely assume a comparable share in digital form.

JPMorgan expects institutional demand for a bank-issued alternative to stablecoins to drive early use of JPMD. Pending a successful pilot and regulatory clearance, the bank intends to scale issuance volumes and add currency options, positioning deposit tokens as a core tool for cross-border settlement and on-chain liquidity management. Large banks and corporations have increased blockchain experiments as Congress advances stablecoin legislation that could formalize reserve and audit rules.