JP Morgan's JPMD 'Stablecoin' Is Actually a Deposit Token on Base
JP Morgan Chase & Co. plans to launch a deposit token, JPMD, following speculation about the digital asset. The bank will transfer an undisclosed amount of JPMD to Coinbase soon. JPMD is defined as “commercial bank money,” representing a deposit claim against the issuer, and is part of blockchain-based assets for payment settlement. The token will be issued on Base, an Ethereum layer-2 blockchain, and denominated in U.S. dollars. A pilot program will allow approved Coinbase institutional clients to use JPMD for transactions, with broader access planned pending regulatory approval. The announcement clarifies that JPMD is not a stablecoin, dispelling rumors fueled by recent discussions on stablecoin legislation and JP Morgan's ongoing interest in crypto. The bank has been involved in blockchain initiatives since 2020 and processes over $2 billion in daily transactions through its Kinexys platform.
