JPMorgan has completed its proof-of-concept for the JPM Coin deposit token, making the product available to institutional clients on the Base layer-2 network.
Kinexys by JPMorgan announced Wednesday that JPMD is now operational for 24/7 near-instant settlement following months of testing. Major financial players, including B2C2, Coinbase and Mastercard, have already completed test transactions using the token on the Ethereum layer-2 public blockchain.
The deposit token represents JPMorgan's existing bank deposits on a public blockchain, enabling institutional clients to make on-chain native payments with enhanced speed and efficiency. Unlike many stablecoins, JPMD is designed specifically for institutional clients with regulatory compliance, Know Your Customer requirements and banking infrastructure.
Naveen Mallela, global co-head of Kinexys by JPMorgan, stated that the bank is moving the industry forward in transacting on public blockchains. The pilot, which was initiated in June, has now transitioned to full availability for qualified institutional participants who maintain relationships with the banking giant.
JPMorgan aims to expand the deposit token to additional blockchain networks beyond Base. The bank has secured the trademark JPME, signaling plans for a potential euro-denominated deposit token in the future as it builds out its digital asset infrastructure.
Industry Collaborations and Broader Trends
DBS and Kinexys announced Monday that they are developing an interoperability framework to enable transfers of tokenized deposits across public and permissioned blockchain networks. This collaboration reflects growing industry efforts to create seamless movement of digital assets between different infrastructure types.
Other major lenders are exploring tokenized deposit services as traditional finance institutions race to establish blockchain-based payment systems. BNY Mellon has been assessing tokenized deposits that would allow clients to make payments over blockchain rails, according to recent reports.
In the U.K., Barclays, Lloyds, and HSBC have begun a pilot of tokenized sterling deposits. The coordinated testing among major British banks demonstrates that financial institutions globally are prioritizing blockchain infrastructure development for institutional payment services.