JPMorgan Chase has officially launched its dollar deposit token (JPMD) on Coinbase’s Base network, marking the first time the banking giant has deployed a native payment product on a public blockchain.
The move expands JPMorgan’s blockchain operations beyond its long-standing private networks and represents a major step toward the on-chain integration of traditional banking services.
The deposit token will initially be available to institutional clients, allowing transactions to settle instantly and around the clock via the Ethereum Layer 2 network. Unlike traditional wire transfers, which can take several business days, JPMD transactions will clear in seconds.
The token will also be accepted as collateral on Coinbase, with plans to expand to additional currencies and blockchains pending regulatory approval.
Deposit Tokens vs. Stablecoins
JPMorgan’s deposit token differs fundamentally from stablecoins like USDC or Tether (USDT). While stablecoins are issued by private entities and backed by external reserves, deposit tokens represent actual deposits held within a regulated bank. Each token carries the same claim on the bank as a standard account balance but operates natively on blockchain rails.
According to Naveen Mallela, global co-head of JPMorgan’s blockchain division Kinexys, deposit tokens offer institutions “a compelling alternative to stablecoins” that can be yield-bearing while maintaining full regulatory compliance. The bank’s next steps include developing a euro-denominated version, dubbed JPME, and expanding cross-border settlement capabilities as oversight frameworks evolve.
Institutional Integration and Risk Considerations
The JPMD rollout follows a successful trial period with Mastercard, Coinbase, and liquidity provider B2C2, during which JPMorgan tested real-time settlement and collateralization use cases.
The initiative builds on the bank’s broader digital asset expansion, which in recent months has included tokenized U.S. Treasuries on Chainlink, 24/7 client settlements with Brevan Howard Digital, and acceptance of Bitcoin, Ethereum, and crypto ETFs as loan collateral.
Industry analysts view the launch as a defining moment for on-chain banking, though not without challenges. Musheer Ahmed, Managing Director of Finstep Asia, cautioned that banks must address data privacy, anti-money-laundering risks, and blockchain reliability before scaling globally. Despite these hurdles, he said, deposit tokens “enable higher efficiency and move financial institutions toward a 24/7 financial ecosystem.”
Bridging Traditional Finance and Blockchain
The introduction of JPMD underscores JPMorgan’s conviction that blockchain will become integral to commercial banking. The Base network—a Layer 2 Ethereum scaling solution built by Coinbase – serves as the bridge connecting traditional deposits to decentralized finance. “Moving money should take seconds, not days,” the Base team said earlier this year.
While the deposit token is currently restricted to institutional use, JPMorgan plans to broaden access once regulators approve, potentially transforming how corporate and interbank settlements are conducted. As the world’s largest bank by market capitalization brings its deposits on-chain, the line between legacy banking and digital finance continues to blur – signaling that blockchain’s institutional era has officially begun.
