JPMorgan Chase has unveiled a new deposit token called JPMD, positioned as a superior alternative to stablecoins. According to Naveen Mallela, global co-head of Kinexys, JPMorgan’s blockchain division, JPMD is designed to integrate closely with traditional banking systems.
“Institutions will use JPMD for on-chain digital asset settlements and cross-border B2B transactions,” Mallela told CNBC. He also noted that JPMD will eventually offer interest, enhancing its compatibility with existing deposit products used by institutions.
The token will launch on Coinbase’s public blockchain, Base. This marks JPMorgan Chase’s first venture into public blockchains and reflects the bank’s belief in deposit-based products as fundamental to money, Mallela said in a LinkedIn post.
“JPMD combines advantages of stablecoins with interest payouts, deposit insurance, and fungibility with existing account-based money,” Mallela stated. “For institutional users, deposit tokens offer a superior option for on-chain cash on public blockchains.”
Kinexys’ technology will support seamless interoperability between on-chain and off-chain banking infrastructure.
Base highlighted JPMorgan’s choice of its blockchain to enable near-instant settlement and real-time liquidity. The platform emphasized that JPMD will allow secure, 24/7 money transfers between trusted parties, noting, “Moving money should take seconds, not days. Commercial banking is coming onchain.”
Recent reports indicate that deposit tokens, representing tokenized commercial bank assets, are gaining traction as liquid payment methods and value stores in blockchain environments. Several major banks support this innovation.
JPMorgan Chase has reportedly been developing the infrastructure for JPMD since 2023, aiming to speed up cross-border payments and settlements pending U.S. regulatory approval.