JPMorgan Launches JPMD Token on Coinbase Base for 24/7 Fund Transfers

JPMorgan has launched a pilot program for a permissioned USD deposit token named JPMD on Base, a layer 2 Ethereum network developed by Coinbase. This initiative marks the first instance of JPMorgan's Kinexys distributed ledger technology being deployed on a public blockchain, specifically designed for institutional clients.

JPMD is positioned as an alternative to stablecoins, offering JPMorgan's clients the ability to transfer funds 24/7 on-chain. This move comes as banks and other financial institutions increasingly explore the stablecoin space in anticipation of forthcoming regulations around dollar-pegged tokens in the U.S. JPMorgan's previous venture, JPM Coin, was a token used for settling the cash leg of trades on its private blockchain, Onyx Digital Assets.

Jesse Pollak, Creator of Base and VP of Engineering at Coinbase, expressed enthusiasm about JPMorgan's entry into the on-chain ecosystem. He highlighted that Base provides sub-second, sub-cent, 24/7 settlement, making fund transfers between JPMorgan's institutional clients nearly instantaneous. This pilot program leverages the credibility of both JPMorgan and Base to facilitate the integration of institutional money into a more global economy.

Earlier this week, JPMorgan filed a trademark application for a crypto-focused platform also named JPMD. This platform is designed to offer a range of services, including trading, exchange, transfer, and payment services for digital assets, as well as the issuance of digital assets. The introduction of JPMD on Base signifies a strategic move by JPMorgan to enhance its digital asset capabilities and provide more efficient financial services to its institutional clients.