JPMinted: Wall Street’s Biggest Bank Goes On-Chain

JPMorgan Chase, the world’s largest bank by assets, is preparing to roll out JPMD, a USD‑backed deposit token, on Coinbase’s Base blockchain. It’s the first time the bank’s Kinexys arm (formerly Onyx) will issue a token on a public Layer 2 network.

JPMD is a permissioned digital claim on a bank deposit. Only whitelisted institutional clients, asset managers, corporate treasurers, big banks, may hold and transact it. This structure makes JPMD a “programmable deposit,” offering the speed and flexibility of crypto while remaining firmly backed by insured, traditional reserve banking.

With regulatory frameworks shifting, JPMD offers banks 24/7 on‑chain settlement, fees under a cent, and the comfort of deposit insurance and potential interest. The pilot begins in the coming days, with JPMorgan transferring a fixed amount of JPMD from its own wallet to Coinbase via Base. Base’s appeal lies in its hybrid design, public‑chain transparency combined with Layer 2 security and a governance layer, making it more palatable for banks and regulators wary of fully permissionless networks.

The trial will reportedly run for several months, with future support for other currencies contingent on regulatory approval. For asset managers, JPMD could streamline on‑chain liquidity. Rather than holding multiple stablecoins and reserve-convert mechanisms, users will tap directly into JPMorgan deposits, programmable, liquid, and potentially yielding interest.

That said, regulatory headwinds may remain. Basel Committee on Banking Supervision rules currently penalise tokens issued on permissionless chains. JPMorgan may argue that Base’s semi‑governed nature and its relationship with Coinbase could satisfy the requirement for “sufficiently mitigated risks” in crypto‑asset frameworks. The US may also voluntarily delay or reinterpret Basel crypto‑rules, giving JPMD more room to grow.

If successful, JPMD could become the blueprint for other bank‑issued deposit tokens, cross‑border settlement rails, tokenised collateral, and real‑time treasury management. JPMD on Base may mark a paradigm shift where commercial banks don’t just interface with crypto, they build it.

By Steven Pettigrove and Luke Misthos