JPMorgan Shakes Up Crypto: JPM Coin Goes Live on Coinbase’s Base Blockchain

Wall Street meets Web3 as banking giant JPMorgan launches its JPM Coin stablecoin on Base—Coinbase's Ethereum L2 chain.

The institutional deposit token now settles transactions at blockchain speed, though skeptics note it's still dollar-denominated (some things never change).

This marks the first major bank-issued stablecoin deployment on a public blockchain network. Expect 24/7 settlements, programmable finance, and—if we're lucky—a few banking execs finally understanding what 'gas fees' are.

One small step for regulatory compliance, one giant leap for TradFi's blockchain ambitions.

TLDR

• JPMorgan Chase is launching JPMD, a deposit token in partnership with Coinbase on the Base blockchain for institutional clients
• JPMD differs from stablecoins as it represents bank deposits managed with blockchain technology rather than being backed 1:1 by US dollars
• The token will enable 24/7 settlement and cross-border business payments exclusively for corporations and pension funds initially
• JPMD operates within traditional banking regulations and allows institutions to treat it as bank deposits on their balance sheets
• The token faces competition from dominant stablecoins USDT ($165.58 billion supply) and USDC ($61.17 billion supply) in the $4.1 trillion transaction volume market

JPMorgan Chase announced the launch of JPMD, a new deposit token developed in partnership with cryptocurrency exchange Coinbase. The largest US bank filed a trademark for “JPMD” over the weekend and plans to begin piloting the digital currency in the coming days.

JPMorgan, the world's largest bank, is launching its own token called JPMD. pic.twitter.com/hgCNXVSbWT

— Brew Markets (@brewmarkets) June 17, 2025

The token will operate on Base, Coinbase’s Ethereum-based Layer-2 blockchain network. JPMD represents a digital version of traditional bank deposits that uses blockchain technology for settlement and transfers.

Jesse Pollack, VP of engineering at Coinbase, stated that the pilot combines the credibility of both JPMorgan and Base to help bring institutional money into a more global economy. The collaboration marks JPMorgan’s continued expansion into blockchain-based financial services.

JPMD will be exclusively available to JPMorgan’s institutional clients initially. These clients include corporations and pension funds that require efficient cross-border payment solutions.

The bank plans to expand access to more institutional clients over the coming months. The token will enable round-the-clock settlement capabilities for business-to-business payments.

Deposit Tokens vs Traditional Stablecoins

JPMorgan chose to create a deposit token rather than a traditional stablecoin for specific operational reasons. Stablecoins like Tether’s USDT and Circle’s USDC are typically backed 1:1 by US dollars and used primarily by retail traders.

Deposit tokens operate differently by representing actual bank deposits rather than dollar reserves. JPMD will be backed by the same liquidity frameworks that support traditional banking operations.

Naveen Mallela, global co-head of JPMorgan’s blockchain division Kinexys, explained that institutional clients can treat JPMD as bank deposits on their balance sheets. This provides certainty around financial and accounting treatment that stablecoins cannot offer.

The deposit token structure allows JPMorgan to integrate blockchain technology within existing banking regulations. This approach provides familiar operational frameworks for institutional clients while enabling blockchain-based efficiency.

Each JPMD token represents a deposit claim against JPMorgan Chase. The bank maintains full regulatory compliance while offering modern blockchain-based settlement capabilities.

Market Competition and Industry Context

The stablecoin market currently sees massive transaction volumes exceeding $4.1 trillion over the past 30 days. Tether’s USDT maintains a supply of 165.58 billion tokens, while USDC holds 61.17 billion tokens as of June 2025.

Treasury Secretary Scott Bessent has projected the stablecoin market could reach $3.7 trillion by 2030. The recent Senate approval of the GENIUS Act represents the first major crypto legislation in the United States.

JPMD enters this competitive landscape with regulatory backing from a major traditional bank. Simon Taylor, Head of Strategy at Sardine, noted the token targets corporate treasurers who are curious about stablecoin adoption.

The deposit token could potentially compete with USDC and USDT for dollar usage as on-chain finance grows. However, JPMD’s permissioned nature limits its accessibility compared to public stablecoins.

JPMorgan’s approach reflects CEO Jamie Dimon’s evolving stance on digital assets after years of skepticism. The bank now allows clients to invest in Bitcoin, marking a shift in its cryptocurrency strategy.