JPMorgan Pilots Digital Deposit Token JPMD on Coinbase’s Base Blockchain

JPMorgan is set to pilot a new digital deposit token, JPMD, on Coinbase’s Base blockchain. This initiative marks a significant expansion of the bank’s blockchain footprint beyond its internal systems. The pilot will involve transferring a fixed amount of JPMD, which is backed one-for-one by U.S. dollar deposits, from JPMorgan’s wallet to Coinbase. Initially, the token will be available to institutional clients for transactions, with plans to broaden access and support other currencies pending regulatory approval.

The launch of JPMD represents a notable evolution in JPMorgan’s use of blockchain technology. The bank already operates Kinexys, its in-house platform for digital payments and tokenized assets. Kinexys processes over $2 billion in daily payments and supports tokenized foreign exchange, derivatives, and data validation via its Liink network. The JPMD pilot extends this infrastructure to the public blockchain space for the first time. Unlike stablecoins, deposit tokens are issued by regulated banks and represent a direct claim on deposits. JPMorgan views them as more secure and scalable for institutional use.

“From an institutional standpoint, deposit tokens are a superior alternative to stablecoins,” said Naveen Mallela, global co-head of Kinexys. He further explained that deposit tokens might earn interest in the future and be eligible for deposit insurance, two features that are currently unavailable with the majority of stablecoins. This move follows a series of public blockchain milestones for JPMorgan in 2025. In May, the bank completed its first tokenized settlement on a public network, transferring U.S. Treasuries using Chainlink and Ondo Finance. In April, Kinexys partnered with Nacha’s Phixius to use blockchain for U.S. account validation in ACH payments. Most recently, JPMorgan began accepting crypto exchange-traded funds shares, including BlackRock’s iShares Bitcoin Trust, as collateral for client loans.

These developments demonstrate the bank’s increasing dedication to integrating traditional finance with blockchain technology. While JPMD is intended for wider use, starting with Coinbase and possibly branching out to retail-facing applications, Kinexys will still focus on large corporate flows. The pilot is expected to run for several months, with further developments depending on regulatory feedback and market demand. This initiative underscores JPMorgan’s commitment to leveraging blockchain technology to enhance transaction speed and efficiency, potentially setting a precedent for other financial institutions to adopt similar solutions.