The U.S. Senate has passed the GENIUS Act with a 68–30 bipartisan vote, establishing the first-ever federal framework for stablecoins. The legislation enforces full reserve backing, monthly audits, and AML protocols—offering clarity and oversight while enabling broader adoption of digital asset payments across sectors.
June 18, 2025 — New York, NY
In a landmark move that bridges traditional banking and decentralized technology, JPMorgan Chase has launched a pilot for its new digital asset: JPMD, a U.S. dollar–backed deposit token. The initiative marks the first time a major U.S. commercial bank has issued a tokenized deposit on a public blockchain—specifically, Base, the Ethereum layer-2 network developed by Coinbase.
What Is JPMD?
JPMD is a permissioned digital token representing U.S. dollar deposits held within JPMorgan. Unlike private stablecoins such as USDC or USDT, JPMD operates within the traditional banking framework, offering a blend of regulatory trust and blockchain efficiency.
Key Features:
- 1:1 fully backed by deposits held at JPMorgan
- Issued only to verified institutional clients
- May include features like interest accrual and FDIC-like deposit insurance
- Integrated into JPMorgan’s Kinexys Digital Payments ecosystem (formerly JPM Coin)
Why Base?
JPMorgan selected Base due to its:
- Low transaction fees
- Fast settlement speeds
- Public chain transparency paired with permissioned access controls
Base operates as a layer-2 blockchain built on Ethereum, optimized for scalable and secure financial applications. The chain enables instant finality and 24/7 settlement, aligning with JPMorgan’s digital payment ambitions.
Inside the Pilot
The pilot program involves the controlled issuance of JPMD from JPMorgan’s Kinexys wallet to Coinbase infrastructure. Participating institutional partners will test real-time transactions across Base’s ecosystem.
Objectives:
- Evaluate regulatory compliance and client feedback
- Explore cross-border settlements, tokenized collateral, and liquidity management use cases
- Lay the groundwork for multi-currency token issuance in the future
A New Era for Stable Digital Finance
The pilot represents a significant milestone for regulated digital finance:
- JPMD may emerge as a trusted alternative to non-bank stablecoins
- It aligns with the U.S. push toward stablecoin regulation, as seen in discussions within the SEC and Federal Reserve
- JPMD’s success could legitimize bank-issued digital dollars as foundational to institutional crypto adoption
JPMorgan’s Blockchain Vision
JPMorgan already facilitates over $2 billion in daily tokenized transactions via Kinexys on private networks. The shift to public blockchain infrastructure through JPMD represents a strategic expansion—one that could influence how the broader TradFi sector engages with decentralized finance.
Conclusion
JPMorgan’s move to pilot JPMD on a public blockchain is a signal to markets, regulators, and competitors: the future of money is programmable, secure, and instant. If successful, this initiative could reshape how banks issue digital assets—and accelerate the convergence of traditional finance and blockchain ecosystems.
