JPMorgan to Launch JPMD Deposit Token on Base Network

JPMorgan’s blockchain unit Kinexys is launching a USD deposit token called JPMD for institutional clients. JPMD will be launched on Coinbase’s Base blockchain and will be available exclusively to approved clients.

According to an announcement by Base, the token will enable fast, secure, and around-the-clock transactions between trusted parties. 

Not a Stablecoin: What Is the JPMD Deposit Token?

Compared to many stablecoins that are publicly available, JPMD is a deposit token designed for commercial, permissioned use. It’s the first-of-its-kind token with limited access. Naveen Mallela, Global Co-Head at Kinexys, wrote on LinkedIn that for institutional users, deposit tokens can serve as a superior alternative to existing options for on-chain cash.

A first of its kind deposit Token, JPMD will combine many of the advantages of stablecoins with the added benefits of interest payouts, deposit insurance, and fungibility with existing account based forms of money.

Mallela said.

​​In essence, deposit tokens are tokenized commercial bank assets, while stablecoins like USDT and USDC are cryptocurrencies pegged 1:1 to real-world assets such as fiat currency.

The key difference lies in how they are issued and managed. Deposit tokens are issued directly by regulated banks and backed by actual deposits, which makes them more suitable for institutions operating within strict compliance frameworks. Stablecoins, on the other hand, are often issued by private companies and may carry varying levels of transparency and regulatory oversight.

​​Wall Street Banks Are Adopting Blockchain Solutions

Major banks like JPMorgan and Goldman Sachs are integrating blockchain into their infrastructure to improve settlement speed, increase transparency, and reduce operational costs. JPMorgan launched its Kinexys platform (formerly Onyx) in 2020 to modernize financial services. The bank has also stated that it is exploring ways to expand its product portfolio through blockchain technology.

Goldman Sachs announced an expansion of its BTC ETF exposure in February 2025. More recently, in May, JPMorgan, Bank of America, Citigroup, and Wells Fargo began talks on a joint stablecoin project.

This sentiment was echoed by Bank of America CEO Brian Moynihan at the World Economic Forum in January 2025.

If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard on the transactional side of it.

Moynihan said.

His comments underscore a broader belief among financial leaders: with regulatory clarity, traditional banks are poised to become major players in the on-chain economy.

As regulatory frameworks like the GENIUS Act take shape in the U.S. and abroad, JPMorgan's launch of JPMD on a public-facing network like Base is a clear signal of this new era. The move marks a critical step in the convergence of traditional finance and blockchain, where established banks are no longer just exploring the technology, but actively building the infrastructure for on-chain capital markets.