What Is JPMD and How It Differs from Stablecoins
JPMorgan Chase has taken a landmark step into the cryptocurrency frontier with the launch of JPMD, its proprietary deposit token built on Coinbase’s Base blockchain, a public Ethereum Layer-2 network. Unlike traditional stablecoins such as USDT or USDC, JPMD represents a digital claim on a commercial bank deposit. It is backed 1:1 by USD deposits held at JPMorgan, offering a tokenized form of on‑chain cash that remains fully compliant with banking regulations.
JPMD is structured as a “permissioned” token: issuance and transfers are restricted to JPMorgan’s institutional clients. This model offers key advantages over stablecoins, such as deposit insurance, potential interest payouts, and tight regulatory oversight within the bank’s framework.
24/7 Settlement and Institutional Use Cases
JPMorgan’s move aims to deliver nearly instant global payments, allowing institutional clients to conduct round‑the‑clock on‑chain settlement and cross‑border B2B transfers—all without the delays and costs typical of traditional banking rails. “Moving money should take seconds, not days,” as Coinbase’s Base team noted, underscoring the shift toward real-time liquidity environments.
Additionally, JPMD’s capacity to yield interest aligns it with existing deposit products, offering institutions more seamless treasury operations. In contrast, conventional stablecoins generally do not offer this feature.
Pilot Launch and Tech Integration
The JPMD pilot is currently underway, with JPMorgan minting a fixed token supply on Base and transferring them to Coinbase. From there, JPMorgan’s institutional clients will test JPMD for settlement and internal workflows on public blockchain infrastructure, marking a significant firm-first shift into public-chain territory.
This initiative builds on JPMorgan’s track record in blockchain payments. The bank already operates Liink and JPM Coin on private networks. JPMD represents a strategic evolution: bringing regulated banking systems fully into the public crypto ecosystem.
Stablecoin vs. Deposit Token: What’s the Difference?
While some outlets have referred to JPMD as a stablecoin bankingdive.com, JPMorgan and industry analysts draw a sharp distinction:
Stablecoins (USDT, USDC) are issued by unaffiliated private entities with assets held in trust or reserves.
Deposit tokens like JPMD are directly tied to bank deposits, eligible for deposit insurance, governed by traditional banking rules, and fully integrated within the issuer’s infrastructure.
This distinction makes JPMD less disruptive and inherently more sustainable, especially as stablecoin regulation advances under the U.S. GENIUS Act.
Regulatory Shift
The U.S. Senate’s recent passage of the GENIUS Act, which seeks to regulate stablecoins under strict reserve and audit rules, provides a direct pathway for tokenized deposit products like JPMD. This regulatory clarity emboldens traditional financial institutions to explore on‑chain money without risking non-compliance.
JPMD—and The Broader Banking Industry
JPMorgan’s JPMD sits at the forefront of a wave of banking firms exploring on‑chain digital deposits. Reports indicate Bank of America, Citigroup, and Wells Fargo are in early discussions to launch their own tokens or even a joint stablecoin to compete with crypto-native platforms.
Should the GENIUS Act pass in full, it could further pave the way for a tokenized banking system, where institutions can offer liquid, programmable cash on public chains—ushering in a new era for crypto payments and digital financial infrastructure.
