Wall Street’s digital revolution has taken a decisive leap forward as JPMorgan Chase & Co. revealed on June 17, 2025, that it will pilot JPMD, a digital deposit token representing U.S. dollar holdings, on Base—an Ethereum Layer 2 blockchain incubated by Coinbase. This move is the first time a commercial bank has deployed deposit-based commercial money on a public blockchain, targeting institutional clients seeking instant, secure, and round-the-clock fund transfers.
How JPMD Works and Pilot Details
According to Naveen Mallela, global co-head of Kinexys by JPMorgan, the pilot will involve transferring a fixed amount of JPMD from JPMorgan’s digital wallet to Coinbase Global Inc. via the Base network. Base, built as an Ethereum Layer 2 using the Optimism Superchain architecture, offers sub-second transaction finality and sub-cent fees. Initially denominated in USD, JPMD may expand to other currencies and broader access pending regulatory approval.
Unlike stablecoins, JPMD represents a direct claim on commercial bank deposits, potentially incorporating features such as interest accrual and deposit insurance. Mallela stated: “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.” The pilot builds on JPMorgan's Kinexys Digital Payments platform (formerly JPM Coin), which already facilitates over $2 billion in daily corporate transactions.
Deepening Wall Street-Blockchain Integration
Coinbase and Base acknowledged the development via posts on X. Base commented: “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.” They added: “Commercial banking is coming onchain.”
The pilot is occurring amid a regulatory environment increasingly favorable to blockchain innovation during President Donald Trump’s second administration. JPMorgan has already filed a service mark for JPMD, signaling its intent to commercialize the product. Industry analysts note that JPMD’s success could redefine commercial banks’ role in digital assets and spur more traditional lenders to explore public blockchain-based deposit tokens.