JPMorgan to Launch USD Deposit Token on Coinbase’s Base Network

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JPMorgan is set to issue a USD deposit token, named JPMD, on Coinbase’s Base blockchain network. Designed for institutional investors and clients, the JPMD token aims to bring faster, cheaper, and more efficient settlement solutions to the traditional banking sector.

The JPMD token is the first of its kind to be hosted on a public network like Base. It was initially tested on Kinexys, JPMorgan’s private permissioned blockchain, which has already supported multiple tokenization experiments.

This move follows a landmark collaboration between Chainlink, Ondo Finance, and JPMorgan that saw the first real-world asset (RWA) bridge swap between Ondo Chain and Kinexys, utilizing Chainlink’s CCIP (Cross-Chain Interoperability Protocol).

Institutional-Grade Blockchain Capabilities On a Public Network with JPMorgan

By launching on Base, JPMorgan introduces a permissioned banking token that offers near-instant finality and sub-cent transaction fees, significantly reducing settlement times from days to seconds.

jpmorgan announces launch of usd deposit token on base

The transition from Kinexys to a public network like Base marks a bold step for the bank, signaling growing confidence in open blockchain infrastructure.

Naveen Mallela, Global Co-Head of Kinexys:

“We see institutions using JPMD for on-chain digital asset settlement solutions as well as for making cross-border business-to-business transactions.
Given the fact that deposit tokens would eventually be interest-bearing as well, this would provide better fungibility with existing deposit products that institutions currently use.”

Unlike stablecoins, the JPMD token offers institutional users a more direct link to traditional banking, enabling efficient fund movement while preserving trust and compliance frameworks.

kinexys digital assets scalable technology graphic

JPMorgan’s choice to deploy JPMD on Base is partly due to Coinbase’s long-standing relationship with the bank. Mallela at Kinexys stated:

“Coinbase is a long-standing J.P. Morgan client, and given its pre-eminent standing in the Web3 space, it is a natural collaborator to Kinexys’ pilot of JPMD. The buildout of the on-chain settlement ecosystem for institutional participants in crypto and real-world asset transactions is a particular focus of Coinbase.”

Institutional Momentum for blockchain tech is on the rise

JPMorgan continues to lead among traditional financial institutions exploring blockchain. The Kinexys network has already proven effective in executing advanced tokenized asset strategies.

Its latest collaboration with Ondo Finance and Chainlink enabled the first cross-chain RWA transfer between private and public blockchains—an important milestone for institutional adoption.

chainlink announcement of cross-chain transaction

Ondo Finance, backed by BlackRock, is actively working to bring Wall Street assets on-chain, with its Ondo Chain playing a critical role in the broader RWA tokenization movement.

Meanwhile, Coinbase’s stock (COIN) has surged 16% this week, reflecting increased investor interest in blockchain infrastructure. Additionally, Circle’s CRCL, which debuted on the NYSE, recently reached a new all-time high of $211, up 33% in just two days and 543% since its launch in April.

JPMorgan’s decision to launch JPMD on a public blockchain could set a precedent. Industry insiders speculate that other major banks, including Santander and HSBC, may soon follow, as they explore real-world blockchain applications to modernize financial infrastructure.