JPMorgan Chase has announced the launch of its new digital product—a deposit token called JPMD, which will operate on the Base Layer 2 blockchain owned by Coinbase. Initially, this token will be available exclusively to the bank’s institutional clients.
This is reported by Finway
Features of the JPMD Deposit Token
JPMD is a digital representation of a deposit claim to the bank and is designed to facilitate fast, secure, and round-the-clock transactions between trusted parties. The token will enable institutions to settle digital assets on-chain and conduct cross-border transactions. Representatives from Base emphasize that JPMD is the first of its kind token on a public blockchain that combines the advantages of traditional deposit instruments with modern technology, ensuring 24/7 access to funds.
“We see institutions using JPMD for on-chain digital asset settlement solutions, as well as for conducting cross-border transactions between enterprises. Given that deposit tokens will ultimately also earn interest, this will provide better interoperability with existing deposit products that institutions currently use,” said Navin Mallela, global co-head of the Kinexys platform.
Differences from Stablecoins and Development Plans
According to Mallela, JPMD differs from traditional stablecoins as it offers additional benefits such as interest accrual, deposit insurance, and interoperability with current forms of cashless funds. The launch of the token on a public blockchain marks JPMorgan Chase’s first experience of this kind. Currently, JPMD is denominated only in US dollars, but in the future, the bank plans to expand access to the token to other client categories and add support for other currencies.
The pilot launch of the project will take place over the next few months, after which scaling the solution for a broader user base may be possible. At the same time, the bank’s team emphasizes that deposit tokens could become an effective alternative to cash for institutional clients operating on public blockchains.