Monday, June 5, 2023

JPMorgan Chase has filed a new trademark application in the US for “JPMD,” which financial analysts interpret as evidence of expansion into blockchain and cryptocurrency services, notably potentially including a stablecoin product.

Trademark Filing Details

The filing submitted to the US Patent and Trademark Office on Sunday covers a broad spectrum of crypto-related services, including trading, exchanging, transferring, clearing, and processing payments for digital assets.

The comprehensive scope of services detailed in the application suggests JPMorgan is evaluating extensive integration of blockchain technology into its core financial operations, potentially enabling faster and more efficient banking processes via a digital platform.

JPMorgan Could Have a Stablecoin in the Pipeline

Though “stablecoin” is not explicitly mentioned in the application’s description, this filing follows a WSJ report from May 22 detailing that JPMorgan and other financial giants (Bank of America, Wells Fargo) are exploring a joint stablecoin project.

Indication exists within industry circles that this trademark filing may be connected to the discussions reported by the Wall Street Journal, adding fuel to the speculation surrounding a potential joint offering from the consortium of major banks.

The convergence of the WSJ report and the trademark filing prompts speculation about their potential linkage, as the banks aim to position stablecoins strategically to enhance payment systems, directly competing with existing digital asset offerings.

JPMorgan’s Existing Blockchain Involvement

While CEO Jamie Dimon has voiced strong criticism of Bitcoin, publicly stating the bank has “no interest” in the cryptocurrency, he has historically recognized the underlying blockchain technology’s potential value for traditional finance.

JPMorgan’s own platform, Kinetic (formerly Onyx), currently utilizes JPM Coin, a private stablecoin pegged 1:1 to fiat currencies. According to reports, this platform has facilitated over $1.5 trillion in interbank payments leveraging blockchain technology.

Stablecoin Legislation Advances

This JPMD trademark filing occurs simultaneously with significant legislative movement concerning stablecoins in Washington, D.C. The US Senate last week voted 68-30 to advance the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, a key piece of regulatory framework.

This vote successfully invoked cloture, paving the way for a Senate full debate and potential floor vote, with the prospect that the bill could move forward to the House of Representatives for consideration. Passage would require presidential signature.

The Stablecoin Market Context

The legislative progress and JPMorgan’s trademark application come amidst a rapidly expanding market. Stablecoin market capitalization currently stands at approximately $251.7 billion, demonstrating significant adoption.

Tether (USDT) and Circle’s USDC dominate this space with market caps exceeding $156 billion and $61 billion respectively. Data from DefiLlama highlights the considerable increase in circulating stablecoin supply since December 2017.