J.P. Morgan Launches Blockchain Alternative to Ethereum’s Layer 2

• Lyla Velez
• July 4, 2025
• News
• 0 Comments

J.P. Morgan’s blockchain unit, Kinexys, has introduced a new digital asset, JPMD, on Coinbase’s Base network, a public Ethereum Layer 2, marking a significant shift.

Benefiting the blockchain industry, this initiative by J.P. Morgan heralds a move towards integrating traditional finance with decentralized finance.

Kinexys, under J.P. Morgan, has launched the JPMD on Coinbase’s Base network, reflecting its continued investments in digital asset initiatives. This development highlights the bank’s involvement in blockchain innovation and its commitment to public blockchain infrastructure. Jesse Pollak, VP of Engineering at Coinbase, expressed excitement about this initiative, citing its significance in financial technology sectors.

“We are thrilled to see one of the world’s most prominent banks come onchain.” – Jesse Pollak, Creator of Base and VP of Engineering at Coinbase

This launch echoes J.P. Morgan’s shift from private blockchain solutions to public networks. By prioritizing a public blockchain experiment, JPMD seeks to establish new standards in settlement and liquidity solutions. Its impact on Ethereum’s infrastructure and related stablecoins like USDC and USDT could redefine institutional blockchain usage.

Jesse Pollak shares insights on crypto’s future and its impact

This initiative positions JPMD to become a major component of Ethereum’s financial ecosystems. Observers suggest that if large institutions adopt it, Ethereum’s attractiveness as a platform for digital assets will increase. Market analysts emphasize the role of public blockchains in transforming traditional finance areas.

The financial sector anticipates effects on Ethereum’s market value and utility. Political and regulatory organizations, such as the U.S. Senate, address blockchain technologies’ role, hinting at longer-term impacts on global finance structures. As institutions explore public blockchains, it may lead to widespread financial adaptations.

Recent actions by J.P. Morgan reflect an interest in blockchain nodes and token implementations. If successful, the JPMD could pave the way for enhanced trust and security, encouraging further blockchain adoption across financial sectors. Such developments could lead to augmented regulatory engagement, tailoring laws to new blockchain applications.