The product is built on Base, Coinbase’s layer-2 public blockchain, and will initially be accessible exclusively to JPMorgan’s institutional clients. This move marks the bank’s first foray into deploying a digital asset on a public blockchain, setting a new precedent for the adoption of tokenized banking solutions within established financial infrastructure.

News of JPMD follows the recent trademark filing by JPMorgan Chase, which had previously sparked speculation around a potential new stablecoin. However, the bank’s team emphasizes that JPMD is not a stablecoin in the conventional sense, but a fully backed digital representation of a deposit liability, with key advantages tailored for the institutional market.

According to Navin Mallala, global co-head of the Kinexys platform (formerly Onyx) at JPMorgan, JPMD provides a direct on-chain representation of commercial bank deposits, allowing for the accrual of interest to holders—something most stablecoins do not offer. In an interview with CNBC, she described the token as a tool for digital asset settlement and cross-border B2B transactions:

"We’re seeing institutions use JPMD for digital asset settlement solutions on-chain, as well as for cross-border business-to-business transactions. The ability to pay interest on deposit tokens will make them even more fungible with existing deposit products that institutions rely on today."

Mallala also highlighted that this is the first time JPMorgan Chase is deploying an asset on a public blockchain, with the token designed as a direct alternative to stablecoins:

"JPMD, as the first-of-its-kind deposit token, combines many of the benefits of stablecoins—speed, programmability, 24/7 transferability—with the added advantages of interest accrual, deposit insurance, and fungibility with traditional account-based money. For institutional users, deposit tokens represent a superior option to current cash alternatives available on public blockchains."

Speaking to Bloomberg, Mallala clarified that the pilot phase will launch in the coming months, with plans to expand access to a broader range of clients and additional currencies. At launch, JPMD will be denominated exclusively in US dollars.