J.P. Morgan launches USD deposit token proof of concept on Base
Key points
- J.P. Morgan has released a proof of concept for JPMD, a USD deposit token for institutional clients, on Base, Coinbase's Ethereum Layer 2.
- The pilot lets participating institutions move funds on-chain without relying on private ledger infrastructure, a departure from the bank's Onyx-era permissioned networks.
- Base offers lower gas costs and Ethereum composability, potentially broadening counterparties and DeFi hooks for treasury and collateral desks.
- The proof of concept does not signal production deployment; custody arrangements, redemption mechanics, and coexistence with the permissioned rail remain the open details.
J.P. Morgan has released a proof of concept for JPMD, a USD deposit token designed for institutional clients, on Base, the Ethereum Layer 2 network developed by Coinbase. The pilot enables participating institutions to move funds on-chain without relying on private ledger infrastructure.
The choice of a public Layer 2 marks a departure from the bank’s earlier Onyx-era efforts, which ran on permissioned networks. Base offers lower gas costs and Ethereum composability, potentially broadening the pool of counterparties and decentralised finance hooks available to corporate treasury and collateral desks.
The proof of concept does not yet signal full production deployment. The details to watch are custody arrangements, redemption mechanics, and whether the token will coexist with or replace the firm’s existing permissioned deposit rail.
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