In a landmark development for institutional finance, JPMorgan Chase & Co., the largest U.S. bank by assets, has launched a pilot program for its new USD-backed deposit token, JPMD, on Base, the Ethereum Layer-2 blockchain developed by Coinbase.
This move represents the first time a major commercial bank has deployed a deposit-based digital asset on a public blockchain, signaling a pivotal step in bridging the gap between traditional banking and decentralized finance (DeFi).
JPMD is a permissioned deposit token exclusively designed for institutional clients. It offers a digital representation of U.S. dollar deposits held at JPMorgan, functioning similarly to stablecoins but with key distinctions.
Unlike widely used stablecoins such as Tether (USDT) or Circle’s USDC, which are typically backed by cash equivalents and short-term securities, JPMD is integrated directly into the fractional-reserve banking system. This design allows for potential interest payments and may also provide access to federal deposit insurance, offering a unique value proposition to regulated institutional players.
The launch of JPMD on Base highlights Coinbase’s growing influence in the institutional blockchain space. Simultaneously, Base has added support for wrapped versions of Cardano (ADA) and Litecoin (LTC), further diversifying its ecosystem and reinforcing its position as a gateway between traditional finance and DeFi.
This dual development—JPMorgan’s token launch and Base’s asset expansion—points to a broader institutional embrace of blockchain infrastructure and asset tokenization.
JPMorgan’s foray into public blockchain infrastructure marks a significant shift in sentiment among legacy financial institutions. By experimenting with deposit tokens on a permissioned basis, the bank is testing how existing financial instruments can be ported into blockchain environments—while still retaining regulatory oversight and client protections.
As the lines blur between traditional finance and blockchain-based platforms, JPMD could serve as a model for future tokenized banking products, potentially leading to faster settlement times, improved transparency, and reduced counterparty risk.
While still in its pilot phase, JPMD may represent the future of digital banking infrastructure. Its deployment on a public chain like Base, coupled with Coinbase’s rapid expansion of supported assets, could herald a new era of regulated, institution-friendly DeFi.The success of this initiative will likely shape how other major banks approach blockchain technology in the months and years ahead.
June 2025, Cryptoniteuae