JPMorgan Chase has officially launched its USD deposit token, JPMD, for institutional transfers on Base, Coinbase’s Ethereum layer-2 network. This significant development marks the transition from a proof-of-concept to a fully operational system, enabling institutional clients to execute financial transactions in seconds rather than days. The launch represents a major step toward bringing commercial banking onto blockchain technology.
From proof of concept to fully live.
— Base (@base) November 12, 2025
J.P. Morgan’s USD deposit token, JPMD, is now available for institutional transfers on Base.
Moving money should take seconds, not days. Commercial banking is coming onchain. pic.twitter.com/cW6tMPLvsw
What is JPMD and How Does It Work?
JPMD is an electronic payment instrument issued by JPMorgan that represents US dollar deposits held at the bank. Unlike traditional stablecoins, JPMD functions as a deposit token integrated directly with JPMorgan’s banking infrastructure. The token enables peer-to-peer transactions with programmability while maintaining the regulatory oversight and security measures expected from a major financial institution.
For institutional clients, JPMD offers a seamless way to engage with blockchain transactions using an on-chain cash solution that connects with their existing banking systems. Transactions occur on Base, an Ethereum layer-2 blockchain network built by Coinbase, making the transfer process significantly faster than traditional banking methods. This allows for 24/7, near-instant payments that operate outside the constraints of traditional clearing systems.
JPMorgan has implemented strict security measures to ensure safety on the public blockchain. JPMD remains available only to approved institutional customers of the bank and is subject to the same transaction monitoring and screening requirements that apply across JPMorgan’s services. This controlled approach prevents transfers to non-customers during the current phase.
Institutional Banking Meets Blockchain Technology
The launch of JPMD represents a significant collaboration between the largest US bank and Coinbase, the largest US cryptocurrency exchange. This partnership demonstrates the growing acceptance of blockchain technology within traditional financial institutions and points toward a future where commercial banking routinely incorporates blockchain capabilities.
Coinbase CEO Brian Armstrong emphasized the significance of this development, stating simply, “On-chain payments are the future.” This sentiment reflects the growing recognition among financial leaders that blockchain technology offers transformative potential for the banking sector.
The rollout follows JPMorgan’s earlier pilot program that tested interoperability between banks and blockchain ecosystems. That initiative involved collaboration with partners including Mastercard, Coinbase, and B2C2, focusing on settlement efficiency across platforms. The successful transition from testing to implementation indicates confidence in the technology’s readiness for real-world financial applications.
Naveen Mallela, global co-head of JPMorgan’s blockchain division Kinexys, confirmed that the bank intends to expand JPMD to other blockchain networks in the future. JPMorgan has also trademarked “JPME” for a potential euro-denominated version of the token, pending regulatory approval in the European Union.
The Difference Between Deposit Tokens and Stablecoins
While JPMD shares some similarities with stablecoins—notably the ability to conduct peer-to-peer transactions with programmability—important differences exist. JPMorgan’s deposit tokens differ in key areas including interest payouts and deposit treatment. Institutional clients can regard deposit tokens on their balance sheets with the same considerations typically applied to other deposit products.
A crucial advantage of JPMD is its integration with JPMorgan’s traditional banking systems, which reduces liquidity silos for clients. This integration creates a bridge between conventional banking infrastructure and blockchain technology, allowing institutional clients to benefit from blockchain efficiency without completely abandoning familiar banking frameworks.
For institutional clients, JPMD provides an alternative to stablecoins for native cash settlement and payments. The token facilitates payment for and redemption of digital assets such as tokenized money market funds, enables around-the-clock cross-border payments, and serves as on-chain collateral.
The Future of Banking on Blockchain
Following this initial launch on Base, JPMorgan plans to issue JPMD on additional public blockchain networks, expanding availability to its institutional clients subject to regulatory approval. The bank maintains that the product will remain focused on institutional clients, with no current plans to offer JPMD to retail customers.
This development joins a growing movement of financial institutions exploring digital assets for faster payments and reduced costs. The passage of the GENIUS Act earlier this year has accelerated experimentation with blockchain-based financial instruments among major banks and payment providers.
JPMorgan‘s commitment to blockchain technology extends beyond JPMD. Just one day before the Base announcement, the bank revealed a separate partnership with DBS Bank to pilot tokenized deposit transfers, further signaling its intention to expand blockchain integration across global financial networks.
As institutional adoption increases, the financial landscape continues to evolve toward more efficient, technology-driven solutions. JPMorgan’s JPMD represents a significant milestone in this journey, bridging traditional banking with blockchain innovation to create faster, more efficient payment systems for institutional clients worldwide.
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[…] Launching JPM Coin (JPMD) on Coinbase’s Base layer-2 network, JPMorgan has shifted the instrument from a pilot-stage proof of concept to an operationalized institutional settlement mechanism, a move that simultaneously compresses payment settlement cycles from multi-day clearing processes to near-instantaneous, 24/7 finality and signals a deepening convergence between incumbent banking infrastructure and permissioned blockchain rails; the deployment, which tokenizes digital claims on deposits held at JPMorgan rather than issuing a reserve-backed stablecoin, is positioned to streamline treasury operations for institutional clients by offering programmable, interest-bearing deposit tokens that execute in seconds, can serve as collateral within Coinbase’s ecosystem, and — subject to regulatory approval and cross-chain integration plans — could expand issuance to additional networks, thereby raising salient considerations for compliance regimes, counterparty credit risk management, liquidity provision, and the competitive dynamics among global banks and crypto exchanges adopting digital tokenization strategies. JPMorgan’s decision to utilize Base, an Ethereum layer-2, underscores an emphasis on settlement throughput and predictable fee economics, attributes that materially affect network liquidity and the capacity of institutional participants to deploy capital efficiently across tokenized instruments. This approach leverages Layer 2 scalability to enhance performance while maintaining Layer 1 security guarantees. The architecture, which denotes digital claims on existing bank deposits rather than a conventional reserve-linked stablecoin, aligns the instrument more closely with established banking regulation, but simultaneously introduces complex questions regarding Onchain Compliance frameworks, including identity assurance, transaction monitoring, auditability, and the reconciliation of on-ledger activity with off-ledger deposit records. Institutional clients are likely to value the deterministic finality and interest-bearing potential of JPMD, which can compress operational float and reduce intraday credit exposures, while counterparties and treasury managers must reassess liquidity provisioning strategies, collateral allocation, and intermediation risk in environments where tokenized deposits circulate across permissioned and potentially interoperable chains. Strategically, the collaboration between JPMorgan and Coinbase signals a broader industry trajectory in which large financial institutions and major crypto platforms converge to offer integrated services, a trend that will elicit regulatory scrutiny, necessitate robust compliance tooling, and demand liquidity management protocols capable of supporting 24/7 settlement without undermining systemic stability. This rollout follows a recent announcement that JPM Coin (JPMD) was deployed on Base and enabled for institutional transfers as part of a proof-of-concept phase, demonstrating near-instant payments. It also restricts access to approved institutional customers and blocks transfers to non-customers in the current phase, reflecting access limits. […]