JPMorgan Chase & Co., the premier American bank in terms of assets and market capitalization, has submitted a trademark application for a new blockchain asset named JPMD. This has triggered conjecture that this could be connected to a prospective stablecoin launch.
The U.S. Patent and Trademark Office has accepted the application, but it hasn’t been assigned to an examiner yet, as per a filing dated Sunday.
The trademark application details a system for digital asset trading, exchange, transfer, and payment services. It also mentions potential applications in blockchain-based asset issuance, brokerage, and electronic fund transfers.
The term “stablecoin” doesn’t appear in the application, but it delineates a broad range of “goods/services” that encompass almost every aspect of the digital asset ecosystem, including clearing and data transmission. Significantly, the application mentions debt settlement and brokerage functions “using distributed ledger technology,” hinting at a potential role for the trademark in the real-world asset sector.
JPMorgan isn’t a newcomer to the crypto sphere. It was a pioneer in deeply exploring blockchain technology via its proprietary fork of Ethereum, named Kinexys (formerly Onyx), and its associated JPM Coin.
Now rebranded as Kinexys Digital Payments, the JPM Coin operates as a specially designed stablecoin pegged 1:1 to either the U.S. dollar, the UK pound, or the euro. Kinexys was created to enhance both inter- and intrabank transfers as well as cross-border transactions. It has allegedly processed over $1.5 trillion in cumulative transactions to date.
As per Ledger Insights, it averages around $2 billion in transactions daily as of April. JPMorgan was also an early adopter in the tokenization arena, particularly with its Tokenized Collateral Network, launched in 2022. This platform facilitates users to post tokenized assets, like money market funds, as collateral and transfer ownership nearly instantaneously.
JPMorgan’s venture into blockchain is noteworthy given CEO Jamie Dimon’s infamous criticisms of crypto, particularly Bitcoin. Despite this, Dimon stated that JPMorgan is “probably one of the bigger users of blockchain” in September.
Several banks, including Bank of America, are purportedly exploring stablecoins now given the thawing U.S. regulatory landscape. In May, the Wall Street Journal reported that JPMorgan along with Bank of America, Citigroup, Wells Fargo, and other major banks were allegedly planning a joint stablecoin project.
Corporations like Walmart and Amazon are also considering their own bespoke stablecoins, which can be a profitable venture as shown by the largest stablecoin issuer, Tether.
