Is This the End of Stablecoins as We Know Them?

🏦 JPMorgan’s Deposit Token Hits Coinbase and Base: A New Era for On-Chain Banking?

JPMorgan Chase is stepping further into crypto and this time, it’s doing it publicly.

The bank just announced it will launch JPMD, a dollar-backed deposit token, on Coinbase’s Base chain, marking the first time a major U.S. bank brings tokenized customer deposits to a public blockchain.

Unlike stablecoins, which are issued by fintech firms like Circle or Tether, JPMD represents real dollar deposits held at JPMorgan. It’s a digital version of money sitting in a bank account, with the added benefit of being usable in the crypto ecosystem, at least for institutional clients.

What we know so far:

• JPMD is already minted and will be deposited to Coinbase wallets soon.

• The token will live on Base, Coinbase’s Layer 2 chain on Ethereum.

• Access is restricted to JPMorgan’s institutional clients. No retail usage (yet).

• The first transaction is expected within days, signaling the beginning of a months-long pilot phase.

The move comes just a day after JPMorgan filed a trademark for “JPMD” and weeks after the GENIUS Act, a stablecoin regulation bill, passed a key Senate vote. With regulators inching toward legal clarity, banks are finally getting ready to tokenize.

Why this matters:

• Deposit tokens offer legal clarity. They’re fully backed and sit inside the existing banking system.

• They can earn interest, unlike most stablecoins, making them attractive for institutions.

• They solve a major friction: bridging fiat and crypto directly, without going through unstable intermediaries.

JPMorgan already runs its own permissioned blockchain, Kinexys (formerly JPM Coin), which processes $2 billion daily. But Base opens a new door: connecting to the wider Ethereum ecosystem, DeFi protocols, and Coinbase’s massive institutional base.

The bank also hinted at future tokens pegged to other currencies, pending regulatory approvals.

Big picture:

• Deposit tokens like JPMD may replace stablecoins for institutional users over time.

• JPMorgan handles $10 trillion daily. Even 1% of that going on-chain is a game-changer.

• It also gives regulators a template: what fully-regulated, on-chain money might look like.

📚Read Also: $90B Chinese giant JD.com touts stablecoin plan as solution to cross-border payment delays

The company says its new blockchain-based payment infrastructure could cut the time and cost of international transactions dramatically, with near-instant settlements and fees slashed by as much as 90%.

📊 Market Watch:

RWAs surge 300% YoY

Real World Asset (RWA) protocols just crossed a new milestone: $12.5 billion in value locked, up 300% from a year ago. That puts them in the same league as DeFi giants like Aave and Maker and signals that tokenized finance is no longer just a side bet.

What’s fueling the growth? Institutional players are jumping in with full force, led by BlackRock, whose BUIDL token has quietly become the gold standard for tokenized Treasuries.

The numbers that matter:

• TVL in tokenized Treasuries:
  $1.77B (June 2024) → $7.1B now
  

• Total RWA value locked:
   $12.51B (all-time high)
  

• RWA-backed DeFi loans:
  Over $648M issued
  

• Wallets interacting with RWAs:
  533,606 total; double last year

Most of this growth comes from tokenizing short-term U.S. debt, which DeFi protocols are using as stable-yield collateral. BlackRock’s BUIDL is now held by 49 whitelisted protocols and powers several lending markets, though it’s still not openly tradable.

Crypto-native players like Ondo Finance and Ethena Labs are also pushing the RWA space forward, helping move real-world yield into on-chain primitives.

But it’s not all smooth sailing:

• RWA tokens (like $LINK, $ONDO, $MOVE) are down 15% on average this past week

• Total RWA token market cap sits at $36B

• Coinbase has filed to offer tokenized stocks and other RWAs pending SEC approval

So far, the majority of tokenization still revolves around debt: not equity, real estate, or commodities. The exception is gold: Tether’s XAUt dominates that niche, but DeFi activity remains centered around tokenized bills and bonds.

📚Read Also: Solana treasuries get bullish Wall Street forecast despite market headwinds

Financial services firm Cantor Fitzgerald has initiated coverage for public companies with Solana treasuries. In a note to the client, the firm’s analysts gave the coverage an overweight rating, suggesting that the companies are trading at a premium.

🧾 Regulation Watch: 

Coinbase Wants to Tokenize US Stocks

Coinbase is making a bold move to bring traditional stocks on-chain and it’s turning to the SEC for permission.

In an interview with Reuters, Coinbase Chief Legal Officer Paul Grewal confirmed that the exchange is seeking a no-action letter or similar exemption to offer tokenized equities on its platform. If granted, this would mark a major shift in how US equities are traded and pit Coinbase against giants like Robinhood and Schwab.

What are tokenized stocks?

They’re blockchain-based versions of traditional equities like Apple or Tesla shares that:

• Can be traded 24/7, even outside market hours

• Settle instantly on-chain

• Don’t offer direct share ownership but act as proxies

Grewal called tokenized stock trading a “huge priority” and said Coinbase is in active talks with regulators. He also acknowledged that confidence from the SEC has been a missing ingredient for institutional adoption.

Why this matters:

• Legal clarity from the SEC could set a precedent for other exchanges

• Kraken already launched xStocks for non-US users in May

• Trump-era changes are softening SEC's stance on digital assets
  

The SEC dropped its lawsuit against Coinbase earlier this year, and multiple Biden-era enforcement actions have been rolled back. With the climate shifting, Coinbase hopes to finally get the greenlight.

Meanwhile…

Coinbase isn’t just focused on tokenized equities. Last week, it partnered with Shopify to enable USDC payments for select merchants — a move that aligns with its broader bet on crypto payments.

“We are extremely aligned with everything that crypto stands for,” said Shopify CEO Tobias Lütke, who also sits on Coinbase’s board.

📚Read Also: Ripple files supplemental letter to support motion in XRP lawsuit

There has been an update on the legal battle between Ripple and the US Securities and Exchange Commission (SEC). Reports have it that Ripple has filed a new letter in support of a joint motion asking the court for an indicative ruling.

Market-moving headlines 🔥

Did you know? 🧠

On June 18, 2014, BitPay became the official sponsor of the St. Petersburg Bowl, renamed the “Bitcoin St. Petersburg Bowl.” It was one of the first major sports events to accept Bitcoin for tickets and concessions .

This wasn’t just a sponsorship deal, it was a bold statement that crypto was stepping off screens and into stadiums. Fans could use BTC to buy snacks, beers, and seats. Crypto meeting real fandom in the stands.

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