In a bold move that blends traditional banking muscle with cutting-edge blockchain tech, JPMorgan has kicked off a pilot for JPMD—a permissioned U.S. dollar deposit token—on Base, the Ethereum Layer 2 network developed by Coinbase. It’s not just another headline in the crypto world; it’s a significant signal of where the financial sector is heading.

This initiative marks JPMorgan’s first foray into using public blockchain infrastructure for tokenized finance. The launch of JPMD also introduces Kinexys, the bank’s newly-branded distributed ledger studio (formerly Onyx), to the world of public chains. By shifting from a closed, internal system to a blockchain that’s publicly accessible—albeit permissioned—JPMorgan is setting the stage for more transparent, efficient, and scalable financial interactions.

Earlier this week, the banking giant also filed a trademark for the JPMD brand, hinting at a broader ambition. The trademark spans services like crypto trading, asset issuance, exchange facilitation, and payment services—all designed for an institutional clientele. This move comes at a time when financial regulators are drafting new rules around stablecoins, and JPMorgan seems poised to shape, not just follow, the new regulatory playbook.

Unlike traditional stablecoins, which are typically available to retail users, JPMD is designed for permissioned access—meaning only JPMorgan’s institutional clients can use it. The payoff? Near-instant, 24/7 fund transfers at ultra-low costs. According to Coinbase’s Jesse Pollak, Base enables “sub-second, sub-cent” transactions—giving institutional finance a powerful new operating layer.

This isn’t JPMorgan’s first blockchain rodeo. It previously introduced JPM Coin on its private Onyx network to settle trades. But JPMD’s public deployment takes things to a whole new level. It’s about building infrastructure that bridges old finance and new rails, while staying compliant, fast, and globally accessible.

In a landscape bracing for stablecoin regulation, JPMorgan’s JPMD is more than a pilot—it’s a calculated leap into the future of digital money movement.

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