JPMorgan to launch its digital token dubbed JPMD on Coinbase

JPMorgan Chase is making a bold move into blockchain finance with the upcoming launch of JPMD, a permissioned digital token designed for institutional use. Unlike conventional stablecoins, JPMD will function as a deposit token, a digital representation of a commercial bank deposit, issued on Coinbase’s Base, a public Ethereum Layer 2 blockchain.

The token, which is only available to JPMorgan’s institutional clients, will enable 24/7 settlement, support cross-border transactions, and eventually offer interest payments to holders, according to the bank.

“We see institutions using JPMD for on-chain digital asset settlement solutions as well as for making cross-border business-to-business transactions,” said Naveen Mallela, global co-head of Kinexys, JPMorgan’s blockchain unit.

Not a stablecoin, but close

While JPMD shares some characteristics with stablecoins like USDT and USDC, JPMorgan emphasizes that this is a fundamentally different product. Unlike traditional stablecoins, which are typically unregulated and available to retail users, JPMD is tightly integrated with the bank’s traditional infrastructure and exclusively targeted at vetted institutional clients.

“This would provide better fungibility with existing deposit products that institutions currently use,” Mallela noted.

The move comes as the stablecoin market remains under scrutiny from regulators. In the U.S., the GENIUS Act, which could introduce formal oversight for such tokens, is headed to a Senate vote. Meanwhile, the EU’s MiCA regulation and the UK’s FCA are also moving toward more structured governance of digital tokens.

Why JPMorgan chose Coinbase’s Base

JPMorgan chose Coinbase as its blockchain partner due to the company’s long-standing client relationship and strong market reputation. Built on Ethereum, Base offers scalability and a developer-friendly ecosystem, aligning with JPMorgan’s ambition to bring trusted financial infrastructure into the decentralized space.

Institutional interest is already building

According to JPMorgan, large institutional players have already expressed early interest in JPMD as a native on-chain cash solution backed by a globally trusted financial institution.