On June 17, 2025, JPMorgan Chase & Co. unveiled a groundbreaking pilot for JPMD, a digital deposit token representing U.S. dollar holdings, deployed on Base — the Ethereum Layer 2 blockchain incubated by Coinbase Global Inc. This marks the first instance of a major commercial bank bringing core deposit products onto a public blockchain, signaling a pivotal shift in the intersection of traditional finance and decentralized infrastructure.
Pilot Details: JPMD Transferred from JPMorgan to Coinbase
Naveen Mallela, global co-head of Kinexys by JPMorgan, revealed that the bank will transfer a fixed amount of JPMD from its digital wallet to Coinbase. The transaction occurs entirely on Base, which utilizes the Optimism Superchain architecture for decentralization. Initially dollar-denominated, JPMD may expand to include other currencies and broader institutional access pending regulatory approval. Coinbase and Base acknowledged the development via posts on social media platform X. “Welcome onchain, JPMorgan,” Coinbase stated. Base added: “J.P. Morgan is bringing banking onchain. Kinexys by JPMorgan is launching JPMD, a USD deposit token for institutional clients, on Base. It will be the first token of its kind on a public blockchain, enabling fast, secure, 24/7 money movement between trusted parties.”
Distinction from Stablecoins: The Advantages of Deposit Tokens
JPMD differs fundamentally from stablecoins by directly representing claims on commercial bank deposits, potentially offering features such as interest accrual and deposit insurance. Mallela emphasized: “From an institutional standpoint, deposit tokens are a superior alternative to stablecoins. Because they are based on fractional banking, we think it is more scalable.” He further noted: “It’s the first time that a commercial bank is putting commercial money, a deposit-based product, on a public chain.” The pilot builds on JPMorgan’s existing Kinexys Digital Payments platform (formerly JPM Coin), which processes over $2 billion in daily corporate transactions. JPMD targets institutional clients seeking compliant, efficient alternatives to stablecoins amid a regulatory environment increasingly receptive to blockchain innovation under President Donald Trump’s second administration.
Why Base? Sub-Second, Sub-Cent Transactions
JPMorgan’s selection of Base was driven by its ability to deliver sub-second, sub-cent transaction costs, enabling near-instant settlement and real-time liquidity for institutional clients. Base commented: “Moving money should take seconds, not days. Commercial banking is coming onchain.” The bank has filed a service mark for JPMD, indicating intent to commercialize the product. While the initial pilot size remains undisclosed, industry analysts anticipate rapid expansion. This development is expected to spur other major banks to follow suit, heralding a new era of onchain interbank settlement and institutional DeFi integration.
The JPMD pilot represents more than a technical experiment — it reflects a strategic bet that public blockchains can meet the security, compliance, and scalability demands of the world’s largest financial institutions. As JPMorgan itself stated, the future of commercial banking is onchain.