Yigit Taha OZTURK 
Traditional finance giants are no longer on the sidelines—they’re stepping into crypto with bold moves. One of the latest and most significant entries comes from JPMorgan, which is introducing a blockchain-based solution to challenge stablecoins and reshape institutional transactions.
JPMorgan Deploys JPMD on Base Network
In a strategic development, JPMorgan has launched a pilot for its new deposit token, JPMD, on Coinbase’s Layer 2 blockchain, Base. The token represents U.S. dollar deposits held in bank accounts, making it a digital representation of real-world funds within the traditional banking infrastructure.
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According to Naveen Mallela from JPMorgan’s blockchain division, a fixed amount of JPMD will be transferred to Coinbase in the coming days, with the transaction settled in USD. After regulatory clearance, other fiat currencies may be supported. Once the pilot concludes, Coinbase’s institutional clients will be able to use JPMD for transactions.
Why Deposit Tokens Could Outshine Stablecoins
Unlike stablecoins, which are backed by reserves but operate outside the banking system, deposit tokens are fully integrated with traditional finance. Mallela argues that deposit tokens like JPMD are more scalable and may even offer interest payments in the future—something most stablecoins lack.
This positions JPMD as a potentially superior instrument for institutional investors. Meanwhile, industry experts warn that the rise of yield-generating stablecoins could disrupt traditional banks—a trend that’s already making major financial players uneasy.
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