JP Morgan Launches JPMD Deposit Token on Coinbase's Base Blockchain

JP Morgan Chase has announced plans to launch a deposit token named JPMD, which will run on Base, the public blockchain developed by Coinbase and built on the Ethereum network. The announcement comes after the U.S. banking giant filed a trademark application for "JPMD", which includes a wide range of crypto services such as trading, exchange, transfers, and payments.

According to CNBC, the JPMD token will serve as a digital representation of commercial bank money and will be accessible exclusively to JP Morgan’s institutional clients. It will enable 24/7 settlement and interest payments, setting it apart from traditional stablecoins.

Bank representatives stated that JPMD will primarily be used for on-chain settlements and cross-border B2B transactions. JP Morgan emphasized that the choice of Base is based on its existing relationship with Coinbase, considered a trusted partner in the crypto space.

Unlike stablecoins like USDT and USDC, JPMD will operate in a permissioned system, accessible only to institutional clients of the bank.