JPMorgan to Launch Dollar Token on Coinbase’s Blockchain

The token, called JPMD, will be available only to approved institutional clients.

JPMorgan will launch a U.S. dollar token on Base, a blockchain developed by Coinbase, offering an alternative to stablecoins like Tether and Circle’s USDC.

The token, called JPMD, represents dollar deposits at the bank. It will allow approved institutional clients to transfer funds between each other almost instantly. Deposit tokens differ from stablecoins because they reflect deposits held at a bank. Stablecoins, by contrast, are typically backed 1:1 by cash and short-term Treasurys.

The launch on Coinbase’s blockchain allows JPMorgan to offer its deposit token beyond its internal systems to eventually target a broader user base. It signals upcoming competition from banks against popular stablecoin issuers Tether and Circle. Some banks, including French bank Société Général, plan to issue their own stablecoins targeting crypto users. The U.S. Congress is deliberating laws to regulate the issuance of stablecoins.

Separately, JPMorgan executives met with the SEC today and discussed potential impact of capital markets activity migrating to public blockchain, according to a meeting log.