JPMorgan Confirms Launch of JPMD Token on Base Blockchain

Financial conglomerate JPMorgan is set to launch a pilot project for the deposit token JPMD. This was revealed to Bloomberg by Navin Mallela, head of the bank’s blockchain division, Kinexys.

The first transaction will take place in the coming days on the Base blockchain with the participation of the cryptocurrency exchange Coinbase. Subsequently, institutional clients of the trading platform will be able to use JPMD for various operations.

“For the first time, a commercial bank is placing commercial money, a deposit product, on a public network. And we are starting with Base,” noted Mallela.

Although JPMD will operate on a public blockchain, it will remain a permissioned token. Only institutional clients of JPMorgan will have access to it.

The pilot project will last several months. According to Mallela, after regulatory approval, the bank intends to expand the project to other currencies and user groups.

Deposit tokens are digital versions of customer deposits in a commercial bank. They differ from stablecoins, which are backed by a basket of securities. According to Mallela, such assets could become a more scalable alternative to stablecoins. In the future, JPMD may potentially yield interest and fall under the deposit insurance system.

Previously, JPMorgan filed a trademark application for JPMD. The document outlines a range of cryptocurrency-related services.

In May, the bank’s CEO Jamie Dimon announced that the conglomerate would soon allow clients to purchase digital gold, but would not act as its custodian.

In June, media reported that JPMorgan would begin accepting Bitcoin ETFs from BlackRock as collateral for loans.