JPMorgan Chase Launches JPM Coin (JPMD) on Coinbase’s Base Blockchain, Pioneering Digital Deposit Tokens

JPMorgan Chase has officially launched JPM Coin (JPMD), a digital deposit token designed for institutional clients, marking a significant milestone in the banking giant’s blockchain innovation. According to Bloomberg, the token represents U.S. dollar deposits held at JPMorgan and enables real-time transfers on Coinbase’s public blockchain, Base, as confirmed by Naveen Mallela, co-head of JPMorgan’s blockchain unit, Kinexys.

Unlike traditional payments that can take days to process, JPM Coin allows instant, 24/7 settlements, providing unprecedented speed and efficiency for financial institutions. The rollout follows successful trials with major players such as Mastercard, Coinbase, and B2C2, showcasing the token’s potential to revolutionize cross-border and institutional payments.

JPMorgan also plans to expand JPM Coin to multiple blockchains and currencies, pending regulatory approval. A notable feature of the token is its acceptance as collateral on Coinbase, underscoring its increasing integration within the crypto and digital asset ecosystem.

While similar to stablecoins in functionality, deposit tokens like JPM Coin differ fundamentally. They are digital representations of funds already held in bank accounts, ensuring both security and compliance with banking standards. Unlike typical stablecoins, which are backed by reserves and yield no interest, deposit tokens can be interest-bearing, offering institutional investors a compelling blend of liquidity and returns.

This launch aligns with a broader trend among global financial institutions such as Citigroup, Deutsche Bank, HSBC, Banco Santander, and PayPal, all of which are exploring blockchain-based deposit tokens to reduce payment costs and enhance settlement efficiency.

JPMorgan’s move follows recent U.S. regulatory developments like the Genius Act, which provides a framework for dollar-pegged digital tokens, signaling a new era of blockchain adoption in traditional finance and reinforcing JPMorgan’s leadership in the digital asset revolution.