JPMorgan Launches JPMD Token on Base Blockchain
Date: 2025-06-19 Author: Henry Casey Categories: BUSINESS
The financial giant JPMorgan is preparing to launch a pilot project with the JPMD token, a digital asset that will operate on the public Base network. This was reported to Bloomberg by Navin Mallela, head of the blockchain division of Kinexys. The first transaction using JPMD is scheduled for the coming days with the participation of the Coinbase crypto exchange. In the future, institutional clients of the platform will be able to use the token for various financial transactions.
According to Mallela, this is the first time a commercial bank has placed a deposit product on a public blockchain network. Despite the use of a public blockchain, JPMD will remain a permissioned token, which will only be accessible to approved institutional users of JPMorgan.
The pilot project is designed to last several months, and with the support of regulators, the bank intends to expand it, including new currencies and categories of users. Deposit tokens like JPMD are digital analogues of bank deposits, but differ from stablecoins backed by a basket of securities. According to Mallela, such tokens can become a more scalable and sustainable alternative to stablecoins, and in the future, interest income may appear and the tokens may be included in the deposit insurance system.
Earlier, JPMorgan applied to register the JPMD trademark, which reflects the bank's desire to develop cryptocurrency-related services. Recall that in May, JPMorgan CEO Jamie Dimon said that the bank's clients will soon be able to purchase digital gold, although the bank itself will not become its custodian.
In June, it was also reported that JPMorgan intends to accept BlackRock's Bitcoin ETF as collateral for loans, which further indicates the expansion of crypto assets in the bank's activities.
Thus, JPMorgan is taking an important step in integrating traditional finance with blockchain technology, opening up new opportunities for institutional investors and developing innovative financial instruments based on digital assets.
