JPMorgan has launched a pilot for JPMD, a permissioned USD deposit token, on Base, Coinbase’s layer 2 Ethereum network.
The bank recently filed a trademark for JPMD, a crypto platform offering trading, exchange, transfer, payment services, and digital asset issuance.
Designed for institutional clients, JPMD serves as an alternative to stablecoins and represents JPMorgan’s first use of its Kinexys distributed ledger technology on a public blockchain.
With regulatory frameworks for dollar-pegged tokens approaching, banks and enterprises are increasing their activity in the stablecoin market. JPMorgan previously gained attention with JPM Coin, a token used on its private Onyx Digital Assets blockchain for trade settlements.
Jesse Pollak, Creator of Base and Coinbase’s VP of Engineering, said, “We are thrilled to see one of the world’s most prominent banks come onchain. Base offers sub-second, low-cost, 24/7 settlement, enabling near-instant fund transfers between JPMorgan institutional clients. Coinbase is a proud JPMorgan institutional client, and this pilot leverages the strengths of both to expand institutional access to a global economy.”