JPMorgan Chase applies for the "JPMD" trademark for digital asset payment services, hinting at a potential stablecoin.

Written by: Blockchain Knight

JPMorgan has submitted a trademark application named "JPMD," which covers transaction, exchange, transfer, and payment services related to Crypto assets, digital tokens, and Blockchain-enabled currency.

According to reports on June 16, the application includes electronic funds transfer, real-time token trading, custody services, and secure online financial transactions. The document states that the trademark owner is JPMorgan Chase Bank, located in Columbus, Ohio.

This move came after reports on May 23 that JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo were discussing a joint stablecoin initiative.

Sam Kazemian, the founder of Frax Finance, confirmed the relevant discussions and stated that the discussions have moved beyond the preliminary conceptual stage.

Reports indicate that these banks aim to compete directly with native issuers of cryptocurrencies and view dollar-backed tokens as strategic tools for providing instant liquidity and hedging against market volatility.

The largest banks in the United States will control the issuance and settlement of stablecoins through collaboration, while adhering to the compliance standards they follow in the traditional financial sector.

In addition, this trademark application closely follows JPMorgan's decision to accept spot BTC ETFs as collateral for loans.

Reports from June 4 indicate that the plan will initially start with BlackRock's iSharesBTC trust fund (IBIT) and gradually expand to trading and wealth management clients.

The bank will also include digital asset holdings when calculating customers' net worth, treating them equally with stocks, vehicles, and artworks during the credit review process.

The BTC collateral program and the application for the "JPMD" trademark together indicate that the largest bank in the United States is making broader strides into the Crypto asset space.

Although the bank has not yet announced a consumer-facing token program, the functions described in the trademark are similar to those of a dollar-backed stablecoin.

This move comes at a time when traditional financial entities are increasingly interested in stablecoins.

According to data from DefiLlama, the scale of the cryptocurrency sector is nearing $252 billion. In May alone, the trading volume of the eight largest stablecoins reached $4 trillion.

Last week, it was reported that American banks and the world's largest financial clearing organization, the Depository Trust & Clearing Corporation (DTCC), are advancing their stablecoin plans, further highlighting the importance of these assets.

JPMorgan's trademark application, discussions among several banks, and new collateral plans indicate that large financial institutions are continuously integrating digital assets into their core lending and payment operations.