- JPMorgan launched a pilot for JPMD to help businesses transfer dollars faster using blockchain.
- The token runs on Base and lets firms settle trades with less time and lower fees.
- JPMD may replace stablecoins for institutions that want direct digital cash from banks.
JPMorgan has launched a pilot for JPMD, a permissioned U.S. dollar deposit token, on Base, the Ethereum Layer 2 network built by Coinbase. This marks the first time JPMorgan’s Kinexys ledger technology will run on a public blockchain, offering institutional clients fast, low-cost settlement options for digital transactions. The announcement follows the bank’s trademark filing for the “JPMD” earlier this week.
JPMD Aims to Replace Stablecoins with Bank-Grade Digital Cash
Unlike stablecoins, JPMD is issued by a commercial bank and reflects actual deposit holdings. The token could earn interest equal to the deposit it represents. JPMorgan said this offering could attract institutions needing trusted digital alternatives to stablecoins, which face regulatory gaps.
“Institutions could use JPMD for onchain digital asset settlement and cross-border business-to-business transactions,” said Naveen Mallela, global co-head of Kinexys, JPMorgan’s blockchain unit, in a statement to CNBC. He added that JPMD has drawn “preliminary interest from large institutional players who want more native on-chain cash solutions from pre-eminent and reputed financial institutions.”
According to a recent Artemis survey, business-to-business transactions are the fastest-growing use case for stablecoin transfers. JPMorgan’s entry into the space signals a shift toward bank-issued tokenized money on public chains.
JPMorgan Chooses Base for Speed and Cost Efficiency
JPMorgan selected Base to leverage its ability to process sub-second and sub-cent transactions. “JPMorgan chose Base to take advantage of sub-second, sub-cent transactions for their clients,” the Base team wrote in a post on X. They stated, “Moving money should take seconds not days. Commercial banking is coming onchain.”
Related: JPMorgan Files JPMD Trademark to Expand Crypto Services
The pilot may extend to include other currencies beyond the dollar, pending regulatory clearance. While JPM Coin has been active on JPMorgan’s private blockchain, previously known as Onyx Digital Assets, JPMD represents a step toward public blockchain deployment.
Every day, JPMorgan handles over $10 trillion in transactions. Of that, around $2 billion flows through its internal chain. Base integration allows JPMorgan to tap into the Ethereum ecosystem and Coinbase’s institutional network.
The move comes just as the U.S. Senate approved the GENIUS Act on Tuesday, a bill expected to introduce the first federal compliance standards for dollar-pegged stablecoins.
