JPMorgan Launches Pilot Integrating TradFi with DeFi via JPMD Token

JPMorgan, in collaboration with Chainlink and Base, has initiated a pilot project aimed at integrating traditional financial systems with decentralized finance (DeFi) methods. This project, unveiled at the RWA Summit Cannes 2025, represents a significant milestone in JPMorgan's exploration of the convergence between traditional finance (TradFi) and DeFi, potentially reshaping the financial landscape. The initiative is led by Nelli Zaltsman, Head of Blockchain Payments Innovation at JPMorgan, and Sergey Nazarov, Co-founder of Chainlink Labs, who emphasize the project's potential to connect traditional finance with digital assets seamlessly.

The pilot introduces the JPMD deposit token, which facilitates real-time financial settlements while adhering to traditional security protocols. This move reflects JPMorgan’s strategic shift towards greater collaboration with public blockchains. The project is anticipated to have a substantial impact on Ethereum (ETH), which underpins Base, and Chainlink (LINK), as these assets play crucial roles in the initiative. Sergey Nazarov described JPMorgan’s pilot as a "very early sign" of how major banks can connect traditional capital with digital asset markets, suggesting that this pilot could accelerate the adoption of blockchain solutions within conventional financial institutions.

Nelli Zaltsman highlighted the project’s regulatory adaptability, noting that the focus is on compliant onchain assets. This pilot may drive competitive pressure, encouraging more banks to experiment with public chain technologies. The synchronized settlement technology developed with Chainlink facilitates crosschain atomic delivery-versus-payment (DvP) transactions, allowing JPMorgan’s blockchain-based deposits to orchestrate settlements across multiple blockchains simultaneously. This technology is described as “asset agnostic,” enabling clients to interact with various networks without being locked into a single blockchain environment, which is crucial for institutional adoption.

JPMorgan’s introduction of JPMD, a deposit token launched on Coinbase’s Base network, represents a novel approach to integrating traditional deposits with blockchain markets. Unlike stablecoins, JPMD remains within the bank’s deposit system, providing clients with direct access to blockchain-based trading and liquidity pools while preserving the security and regulatory oversight of traditional banking. This innovation could serve as a blueprint for other financial institutions seeking to offer blockchain-enabled services without compromising compliance or client trust.

Sergey Nazarov noted that JPMorgan’s initiatives encourage other banks to explore blockchain integration, introducing a new level of transparency and trust through the use of cryptographic proofs and smart contracts. This democratization of capital markets could foster increased competition, innovation, and efficiency across the financial services industry. However, the full convergence of TradFi and DeFi depends on navigating complex regulatory landscapes and further maturing blockchain infrastructure. JPMorgan’s “asset agnostic” strategy reflects an understanding that compliance and interoperability are critical for sustainable growth. Continued collaboration between banks, blockchain developers, and regulators will be essential to address risks and unlock the full potential of onchain finance.

JPMorgan’s blockchain pilots with Chainlink and Base network exemplify a transformative shift toward integrating traditional finance with decentralized ecosystems. By pioneering crosschain settlements and innovative deposit tokens, the bank is setting a precedent for institutional adoption of blockchain technology. As infrastructure and regulatory clarity improve, the artificial boundaries between TradFi and DeFi are likely to dissolve, paving the way for a more interconnected and efficient global financial system.