JPMorgan launches JPM Coin (JPMD) – a digital Token representing USD deposits at JPMorgan – enabling near-instant on-chain payments on Base, exclusively for KYC institutional clients.
Unlike conventional stablecoins, JPMD is a claim on bank deposits and can generate interest, operating under a strict regulatory framework. The move reflects the trend of digitizing deposits at large institutions to increase speed, transparency and efficiency of payments.
- JPMD officially goes live on Base (Layer 2), enabling near-instant, 24/7 on-chain transfers for institutional clients.
- JPMD differs from stablecoins in its legal nature: it is a Tokenize bank deposit, can earn interest, and is subject to strict KYC.
- Institutions like Citi, Deutsche Bank, PayPal are also pushing blockchain solutions for payments; the regulatory landscape in the US (GENIUS Act) is taking shape.
What is JPM Coin (JPMD)?
JPMD is a digital Token backed by USD deposits at JPMorgan, enabling real-time on-chain payments on Base – a public blockchain built by Coinbase. The product exclusively serves institutional clients, fully KYC and banking standards compliant.
According to Bloomberg, JPMorgan has officially put JPMD into operation after many months of testing, following the pilot phase from June, with the goal of bringing the ability to transfer money almost instantly, 24/7 for institutional clients (Bloomberg, November 12, 2025). JPMD is a digital representation of bank deposits, helping to improve the speed, transparency and efficiency of payments.
JPMD only serves KYC-compliant institutional clients
JPMD is exclusively designed for institutional clients, ensuring full KYC and compliance requirements within the banking system.
This approach is suitable for risk management, AML/CFT and operational controls at scale. For institutional clients, JPMD targets high-volume use cases that require transparent clearing, reconciliation and traceability, while maintaining regulatory discipline as part of the banking system.
Base Layer 2 enables near-instant, 24/7 money transfers
JPMD deploys on Base – a public Layer 2 network built within the Coinbase ecosystem – enabling near-instant sending and receiving of Token , operating 24/7 for approved businesses.
The initial testing phase saw the participation of B2C2, Coinbase, and Mastercard. Bringing bank deposits to the public blockchain increases on-chain transparency while maintaining the issuing bank’s control standards, creating a clear bridge between traditional finance and blockchain technology (Bloomberg, November 12, 2025).
“We are pushing the industry forward in transacting on public blockchains, starting with Base – a Layer 2 of Ethereum built within Coinbase.”
– Naveen Mallela, Global Co-Head of Kinexys by JPMorgan, told Bloomberg, November 12, 2025 (Bloomberg)
Tokenize deposits differ from stablecoins in legal nature
JPMDs are a deposit claim against the issuing bank, while stablecoins are typically issued by non-banks and are a claim on that institution's reserves. JPMDs can be interest-bearing and require KYC, aiming for a highly regulated environment.
Bank for International Settlements (BIS) analysis shows that Tokenize deposits maintain connectivity with the banking system, benefit from depositor protection and macroprudential supervision, while still exploiting the programming of blockchain (BIS, Annual Economic Report 2023). This helps differentiate from mainstream stablecoins in terms of legal framework and risk management.
| Criteria | JPMD ( Tokenize Deposits) | Popular Stablecoins |
|---|---|---|
| Issuer | Commercial Bank (JPMorgan) | Usually a non-bank/private issuer |
| Legal nature | Right to claim bank deposits | Issuer's right to claim reserve assets |
| Target users | KYC institutional clients | More broadly, depending on publisher policy |
| Profitability | Can be profitable | Usually not profitable |
| Compliance/Monitoring | Within the legal framework of banking | Regulations subject to stablecoin issuers |
| Infrastructure | Public blockchain (Base) with access control by banks | Public blockchain, less KYC constraints |
Reference source: BIS Annual Economic Report 2023 – Blueprint for the future monetary system (BIS, 2023); Bloomberg, November 12, 2025.
Major financial institutions are pushing blockchain solutions together
JPMorgan's move fits into a broader picture: many global institutions are experimenting with blockchain solutions to increase payment efficiency and reduce operating costs.
Citi introduces Citi Token Services for Tokenize cash management and trade finance (Citigroup, September 2023). Deutsche Bank partners with Taurus to provide custody and Tokenize of digital assets for corporate clients (Deutsche Bank, September 2023). PayPal launches PYUSD – an Ethereum-based stablecoin issued by Paxos – for digital payments (PayPal, August 2023). These moves reinforce the trajectory of digitizing financial infrastructure.
The legal framework is emerging to support products like JPMD
JPMorgan's move comes amid the GENIUS Act in the United States proposing a framework for stablecoin regulation, signaling a clearer regulatory approach for USD-pegged assets.
Combining regulatory discipline with blockchain innovation, JPMorgan moves from a cautious approach to an innovator Vai in the institutional adoption stage, from expanding exposure to Bitcoin to launching digital transaction services. This could accelerate on-chain payment use cases in enterprises as the regulatory landscape becomes more transparent.
Frequently Asked Questions
Who can use JPMD?
Only JPMorgan institutional clients have completed KYC and met banking compliance standards. Individual users are not currently covered (Bloomberg, November 12, 2025).
How is JPMD different from stablecoins?
JPMD is a Tokenize bank deposit that is interest-bearing, KYC-compliant, and subject to banking supervision; stablecoins are typically issued by non-banks with varying levels of KYC and reserves (BIS, 2023).
What infrastructure does JPMD run on?
JPMD operates on Base – a Layer 2 public blockchain within the Coinbase ecosystem – enabling near-instant, 24/7 on-chain payments (Bloomberg, November 12, 2025).
What are JPMD's core benefits to businesses?
on-chain speed and transparency, 24/7 availability, reduced clearing and reconciliation friction, while maintaining banking compliance standards (BIS, 2023; Bloomberg, 11/12/2025).
Is JPMD a stablecoin?
No. JPMD represents USD deposits at banks, different from common stablecoins in terms of legal nature, users and compliance mechanisms (BIS, 2023).
