In a world where Wall Street’s digital revolution gallops forth like a wild stallion, JPMorgan has gallantly launched its JPMD on Base, intertwining the age-old art of commercial banking with the audacious realm of public blockchains, all in a bid to unleash instant institutional liquidity. Who knew banking could be this thrilling?
On the fateful day of June 17, JPMorgan Chase & Co. unveiled its grand plan to pilot the JPMD, a digital deposit token that represents U.S. dollar holdings. This bold move signals a significant leap into the public infrastructure of blockchain operations. The announcement followed the banking behemoth’s filing for a service mark for JPMD, a clear indication of its intent to formalize and commercialize this shiny new toy.
As part of this audacious pilot, JPMorgan will transfer a fixed amount of JPMD from its digital wallet to Coinbase Global Inc., the reigning champion of U.S. crypto exchanges, as per the words of Naveen Mallela, the global co-head of Kinexys by JPMorgan. This transaction will unfold on Base, a blockchain constructed as an Ethereum Layer 2, decentralized with the Optimism Superchain, and incubated by none other than Coinbase. Initially, the JPMD will be dollar-denominated, but who knows? It might just expand to include other currencies, provided the regulatory gods smile upon it. Coinbase and Base celebrated this development with jubilant posts on the social media platform X.
“Welcome onchain, JPMorgan,” Coinbase cheerfully proclaimed. Base elaborated:
J.P. Morgan is bringing banking onchain. Kinexys by JPMorgan is launching JPMD, a USD deposit token for institutional clients, on Base. It will be the first token of its kind on a public blockchain, enabling fast, secure, 24/7 money movement between trusted parties. Because who doesn’t want their money moving faster than a cheetah on roller skates?
They emphasized the rationale for this platform selection: “JPMD is a permissioned bank deposit token, issued by J.P. Morgan, and will be available exclusively to approved institutional clients. J.P. Morgan chose Base to take advantage of sub-second, sub-cent transactions for their clients, giving institutions access to near-instant settlement and real-time liquidity. Moving money should take seconds, not days. After all, who has time to wait?” Base added: “Commercial banking is coming onchain.”
The JPMD token sets itself apart from stablecoins by directly representing claims on commercial bank deposits, offering potential features such as interest and deposit insurance. Mallela stated:
It’s the first time that a commercial bank is putting commercial money, a deposit-based product, on a public chain and we are starting with Base. It’s like putting a tuxedo on a horse—unexpected but oh-so-classy!
“From an institutional standpoint, deposit tokens are a superior alternative to stablecoins. Because they are based on fractional banking, we think it is more scalable,” he continued. The pilot also builds on JPMorgan’s existing Kinexys Digital Payments platform, formerly known as JPM Coin, which facilitates over $2 billion in daily corporate transactions. With JPMD, the bank is targeting institutional clients looking for compliant and efficient alternatives to stablecoins, all while navigating a regulatory environment that is increasingly open to blockchain innovation during President Donald Trump’s second administration. Because why not throw a little chaos into the mix?
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2025-06-18 08:00