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JPMorgan’s deposit tokens to represent fiat deposits, rather than claim on U.S. Treasuries, be fully permissioned, eligible for FDIC insuarnce and wouldn’t require new reserves or a third-party trust structure, making them a likely “alternative” to stablecoins for institutions

June 23, 2025 //  by Finnovate

JPMorgan is planning a digital currency that looks and sounds like a stablecoin. But there are differences that have major ramifications for what the cryptocurrency payments market will look like in the post-GENIUS Act world. The bank said it plans to issue a permissioned USD deposit token, JPMD, for payments on Base, a blockchain that is built within Coinbase. JPMD will launch “in the coming days,” the bank said. “It’s going to be a big question in the near term as we see more institutions explore stablecoins: What’s a stablecoin, and what’s a deposit token?” James Wester, director of cryptocurrency research for Javelin Strategy & Research, told. A deposit token is a digital asset that is a claim on a deposit at a licensed depository institution, such as a bank. Deposit tokens are issued on a distributed ledger, or the structure that underpins cryptocurrency. That makes deposit tokens easier to transfer between consumers or businesses, particularly in different countries. Igor Pejic, author of “Big Tech in Finance,” said that.

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Category: Members, Networks Processors & PSPs, Innovation Topics

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