JPMorgan Introduces JPMD: A Permissioned USD Deposit Token on Coinbases Base Blockchain

In a recent announcement, U.S. banking giant JPMorgan has unveiled the pilot of a permissioned USD deposit token called JPMD on Base, the layer 2 Ethereum network built by listed exchange Coinbase (COIN). This move marks the first deployment of JPMorgan’s Kinexys distributed ledger technology studio on a public blockchain, according to a press release. The institution-focused JPMD is an alternative to stablecoins for JPMorgan’s clients, offering services such as trading, exchange, transfer, and payment services for digital assets, as well as issuance of digital assets. The token is designed to provide sub-second, sub-cent, 24/7 settlement, making fund transfers between JPMorgan’s institutional clients nearly instant. The bank’s move into the stablecoin space is part of a broader trend among banks and other enterprise players who are crowding into this area ahead of soon-to-land rules around dollar-pegged tokens in the U.S. JPMorgan garnered lots of attention for its so-called JPM Coin, a token for settling the cash leg of trades on its private blockchain, then called Onyx Digital Assets. “We are thrilled to see one of the world’s most prominent banks come onchain,” said Jesse Pollak, Creator of Base and VP of Engineering at Coinbase. “Base offers sub-second, sub-cent, 24/7 settlement, which makes fund transfers between J.P. Morgan institutional clients nearly instant. Coinbase is a proud J.P. Morgan institutional client, and this pilot combines the credibility of both J.P. Morgan and Base to help bring institutional money into a more global economy.” The JPMD pilot is expected to be a significant step forward in the adoption of digital assets by institutional investors and could pave the way for more banks to follow suit in the coming months and years. With the increasing demand for faster and more efficient ways to trade and transfer assets, JPMD could become a popular choice among institutional investors looking to take advantage of the benefits of blockchain technology.