JP Morgan Files Trademark for Blockchain Offering JPMD Amid Stablecoin Speculation

JP Morgan Chase, a prominent U.S. investment bank, has filed a trademark application for a blockchain-based offering named JPMD with the U.S. Patent and Trademark Office. This move has sparked speculation that the bank is planning to launch a stablecoin. The application, submitted on June 15, outlines a project focused on "trading, exchange, transfer, and payment services for digital assets" issued on blockchains. Although the U.S. PTO has accepted the proposal, it has not yet been approved.

The filing does not explicitly mention the term "stablecoin" or detail plans to issue a digital asset pegged one-to-one to the U.S. dollar or another fiat currency, which are key characteristics of stablecoins. However, industry experts have noted the proposal's emphasis on cryptocurrency-related services, such as reconciling and clearing financial transactions and digital currency transmission, as potential indicators that JPMD could be a stablecoin.

The letter “D” in the initialism JPMD is speculated to stand for “dollar,” aligning the name with popular tokens like Circle’s U.S. Dollar Coin. This naming convention suggests that JPMD could be a stablecoin pegged to the U.S. dollar.

JP Morgan has not responded to requests for comment regarding the trademark application. The filing comes at a time when U.S. lawmakers are making progress on the Genius Act, which aims to establish regulatory frameworks for stablecoins. The bill, expected to pass this summer, is likely to increase the usage of stablecoins by banks and other financial institutions, potentially leading to a boom in the stablecoin market.

In anticipation of the Genius Act’s passage, several companies, both within and outside the crypto industry, are exploring stablecoin opportunities. For instance, BitGo, a crypto custody firm, announced the launch of its stablecoin USDS last fall. Additionally, the World Liberty project, backed by the Trump family, plans to debut USD1, a dollar-pegged token supported by U.S. Treasuries, dollars, and cash equivalents.

JP Morgan’s potential foray into stablecoins aligns with its ongoing experimentation with digital assets and blockchain technology. The bank established its blockchain unit, Onyx, in 2020, which was later renamed Kinexys. This system has reportedly processed over $2 billion in daily transaction volumes since its inception, positioning JP Morgan as an early adopter of distributed-ledger technology among large financial institutions.