JPMorgan Launches USD-Backed, Yield-Bearing JPMD on Base
JPMorgan has launched JPMD, a USD-backed digital deposit token, on Coinbase’s Base Layer 2 blockchain exclusively for institutional clients with full KYC and regulatory compliance. After a June pilot with participants such as B2C2, Coinbase and Mastercard, JPMD now enables 24/7, near-instant on-chain settlement of tokenized bank deposits. Unlike typical stablecoins, JPMD represents verifiable dollar deposits held at JPMorgan and can generate yield on underlying funds, offering a regulated, interest-bearing alternative. The bank plans to expand access to customers’ clients and introduce a euro variant, JPME, pending regulatory approval. JPMorgan’s Kinexys Digital Payments Network already processes over $3 billion in daily transactions across USD, EUR and GBP, underscoring growing institutional demand for faster, cheaper blockchain payment rails and aligning with the U.S. GENIUS Act framework.
Bullish
The launch of JPMD on Coinbase Base marks a significant step in institutional crypto adoption. By offering a USD-backed, interest-bearing deposit token with 24/7 near-instant settlement and full regulatory compliance, JPMorgan addresses key demands for secure, yield-generating alternatives to traditional stablecoins. In the short term, pilot success and participation by major partners like Mastercard and B2C2 could drive initial demand. Over the long term, expansion to new clients and the planned euro variant (JPME) suggest growing issuance and liquidity, reinforcing bullish sentiment for JPMD’s market usage and integration.