JPMorgan to pilot JPMD deposit token on Base blockchain

JPMorgan is set to test a new digital deposit token, JPMD, on Coinbase’s Base blockchain, a move that expands the bank’s blockchain footprint beyond internal systems.

As reported by Bloomberg on June 17, the pilot will see a fixed amount of JPMD, backed one-for-one by U.S. dollar deposits, transferred from JPMorgan’s wallet to Coinbase. The token will initially be available to institutional clients for transactions, with plans to broaden access and support other currencies pending regulatory approval.

The launch marks a significant 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 sees 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 went on to say 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. 

The 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 (LINK) and Ondo Finance (ONDO).

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 changes demonstrate the bank’s increasing dedication to fusing traditional finance with blockchain. 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. Further developments will depend on regulatory feedback and market demand.