JPMorgan Expands into Crypto with New Deposit Token, JPMD
Published: June 17, 2025, 3:00 PM EDT | Updated: June 17, 2025, 3:21 PM EDT
By Ryan Browne
In a significant move to enhance its presence in the cryptocurrency sector, JPMorgan Chase is set to launch its own deposit token named JPMD. This new offering, which resembles a stablecoin, aims to provide a digital representation of commercial bank money and is geared specifically towards institutional clients.
A Step Forward in the Crypto Arena
JPMorgan’s decision to develop JPMD comes amid the growing popularity and acceptance of digital currencies. The U.S. banking giant announced plans to roll out the JPMD token on Coinbase’s public blockchain, Base, which is built on the Ethereum network. The introduction of this deposit token is designed to streamline transactions for large-scale clients, enabling them to utilize a digital asset closely linked to existing banking operations.
JPMorgan aims to provide not just a digital currency, but also additional features with JPMD. Clients will benefit from 24/7 settlement capabilities and the provision of interest payments to token holders, making it a compelling alternative for institutions looking to integrate digital assets into their financial operations.
Key Features of JPMD
Naveen Mallela, the global co-head of Kinexys—JPMorgan Chase’s blockchain unit—explained that JPMD is envisioned primarily for on-chain digital asset settlement and cross-border business-to-business transactions. He articulated the token’s purpose by stating, "Given the fact that deposit tokens would eventually be interest-bearing as well, this would provide better fungibility with existing deposit products that institutions currently use."
One of the critical distinctions between JPMD and conventional stablecoins is its architecture as a "permissioned" token, meaning it will only be available to JPMorgan’s institutional clients, in contrast to many stablecoins that are openly accessible to the public.
Understanding Deposit Tokens vs. Stablecoins
Stablecoins are cryptocurrencies designed to maintain a steady value by being pegged to fiat currencies, with leading examples including Tether’s USDT and Circle’s USDC. The broader stablecoin market currently holds a valuation of approximately $262 billion according to CoinGecko.
Advocates for deposit tokens, like JPMorgan, argue that these financial instruments allow for a more seamless transfer of funds while retaining institutional ties to the traditional banking system. With ongoing discussions about the regulatory framework surrounding stablecoins—particularly in the U.S. where the Senate is considering the GENIUS Act—JPMorgan appears to be positioning itself advantageously within the evolving legal landscape.
Strategic Partnership with Coinbase
JPMorgan has chosen Coinbase as its blockchain partner due to the exchange’s established position in the crypto sector and its ongoing relationship with the bank. Mallela noted that there has been preliminary interest from major institutional players looking for reliable and native on-chain cash solutions from reputable financial institutions.
The mechanism behind the launch of JPMD has generated anticipation within the financial community, following a trademark application that hinted at the various services linked to the JPMD name, including trading, exchange, and payment solutions for digital assets.
Looking Ahead
As JPMorgan ventures deeper into the cryptocurrency world, the launch of JPMD represents not just the bank’s commitment to innovation in finance, but also a reflection of the broader shift toward digital asset integration in traditional banking. This initiative, along with the meticulous regulatory environment being established in various global jurisdictions, signals that the landscape of finance may be on the brink of significant transformation.
With the crypto sector continuously evolving, JPMorgan’s entry with JPMD is poised to have implications for institutional finance, potentially paving the way for other banks to explore similar offerings in the future.
For ongoing updates and insights on the changing dynamics of the financial landscape, stay tuned to our coverage.