JPMorgan is preparing to test a new digital deposit token, JPMD, on Coinbase’s Base blockchain, marking a significant step in the bank’s expansion into public blockchain technology. This move demonstrates JPMorgan’s ongoing efforts to bridge traditional finance and blockchain innovation.

The Pilot Program: JPMD on Base Blockchain

JPMorgan plans to issue a fixed amount of JPMD tokens, backed one-to-one by U.S. dollar deposits, and transfer them from its wallet to Coinbase. Initially, the token will be available exclusively for institutional clients, with future plans to broaden access and incorporate additional currencies, depending on regulatory approval.

This pilot represents a milestone for JPMorgan, as it extends its blockchain initiatives beyond its internal systems to the public blockchain space for the first time. Unlike stablecoins, digital deposit tokens are issued by regulated banks and provide a direct claim on deposits, making them more secure and scalable for institutional use.

Kinexys: JPMorgan’s Blockchain Backbone

JPMorgan already operates Kinexys, its proprietary platform for digital payments and tokenized assets. Handling over $2 billion in daily payments, Kinexys supports processes like tokenized foreign exchange, derivatives, and data validation through its Liink network. While Kinexys primarily caters to large corporate flows, the introduction of JPMD could extend the bank’s blockchain applications to a broader audience, including retail-facing use cases.

Deposit Tokens vs. Stablecoins

From an institutional perspective, deposit tokens present a distinct advantage over stablecoins. According to Naveen Mallela, global co-head of Kinexys, deposit tokens may offer features like interest earning and eligibility for deposit insurance—benefits that most stablecoins currently lack. This makes them a potential game-changer for institutional transactions.

“From an institutional standpoint, deposit tokens are a superior alternative to stablecoins,” said Mallela.

JPMorgan’s Growing Blockchain Footprint

The launch of JPMD is part of a broader blockchain strategy that JPMorgan has been building over the years. In May 2025, the bank completed its first-ever tokenized settlement on a public blockchain, using Chainlink and Ondo Finance to transfer U.S. Treasuries. Earlier, in April, Kinexys partnered with Nacha’s Phixius to leverage blockchain for U.S. account validation in ACH payments. Additionally, JPMorgan recently began accepting shares of crypto exchange-traded funds, including BlackRock’s iShares Bitcoin Trust, as collateral for client loans.

Public Blockchain Integration

The JPMD pilot underscores JPMorgan’s commitment to integrating public blockchain networks into its financial ecosystem. While Kinexys remains focused on corporate-level flows, the introduction of JPMD opens up possibilities for broader adoption, starting with institutional clients on Coinbase and potentially expanding to retail use cases in the future.

What’s Next for JPMD?

The pilot program is expected to run for several months, during which regulatory feedback and market demand will play a crucial role in shaping its future. If successful, JPMD could pave the way for wider adoption of deposit tokens in the financial industry, offering a secure and scalable alternative to existing digital assets.

JPMorgan’s ongoing efforts highlight the growing intersection of traditional finance and blockchain technology, setting the stage for innovative solutions in the financial sector.

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