JPMorgan Unveils Blockchain Deposit Token

CRYPTO
JPMorgan Unveils Blockchain Deposit Token

JPMorgan Chase is piloting a new blockchain-based deposit token called JPMD, developed in partnership with Coinbase and deployed on the Ethereum Layer-2 network, Base. Unlike stablecoins such as USDC or USDT, JPMD is a deposit token, representing real bank deposits managed on a public blockchain. The initiative targets institutional clients, offering around-the-clock settlements and cross-border payments.

Jesse Pollack of Coinbase called the move a step toward merging traditional finance with global, tokenized infrastructure. Naveen Mallela, co-head of JPMorgan’s blockchain arm, emphasized the bank’s longstanding belief in token-based systems on public chains, citing enhanced transparency and operational efficiency.

Unlike stablecoins—which are widely used for retail trading and issued by crypto companies—deposit tokens are bank-issued, making them better suited for regulatory and accounting treatment at the institutional level. Each JPMD token represents a claim against JPMorgan, backed by the bank’s existing liquidity frameworks rather than a fixed 1:1 dollar reserve.

TECH
Tesla Inks Battery Deal in China

Tesla has signed a landmark deal to build its first grid-scale battery power plant in China, marking a significant move amid ongoing U.S.–China trade tensions. Announced on Weibo, the project will become China’s largest grid-side energy storage facility upon completion. The $556 million agreement involves Tesla, the Shanghai local government, and China Kangfu International Leasing.

The facility will use Tesla’s Megapack batteries, which can deliver 1 megawatt of power for four hours. Over 100 Megapacks have already been produced at Tesla’s Shanghai factory this year. Tesla describes the system as a “smart regulator” for urban electricity, helping balance demand and improve energy reliability.

The project strengthens Tesla’s presence in China’s rapidly growing energy storage market, where domestic giants like CATL and BYD are strong competitors. With China aiming to add 40 GW of battery capacity by 2025, Tesla’s grid-scale solutions are being exported globally from its Shanghai base to meet rising demand.

ECONOMY
U.S. Interest Payments Top $1 Trillion

The U.S. is projected to spend $1 trillion on interest payments next year—more than it spends on Medicare or defense—as the national debt climbs past $36 trillion, or 120% of GDP. Economists at Goldman Sachs warn that unless lawmakers act soon, a historic austerity program could be required to prevent a financial crisis.

While the GOP’s proposed spending bill may reduce deficits slightly—excluding interest—Goldman analysts say it won’t stop debt from rising to post–World War II levels. High interest rates are accelerating both debt and servicing costs, and the U.S. is now borrowing just to cover interest.

Experts argue that the U.S. faces a spending problem, and possibly a revenue problem too. Without meaningful cuts or tax hikes, debt may spiral further. If foreign demand for U.S. bonds weakens or inflation surges, interest rates could spike, forcing politically painful fiscal choices—or worse, risking monetary instability reminiscent of past historical crises.

FINANCE
Markets Slip Amid Iran Tensions

The S&P 500 slipped 0.2% Friday, capping a 1.3% weekly loss amid uncertainty over U.S. policy toward Iran and the Federal Reserve’s next rate move. The Nasdaq fell 0.5%, while the Dow was flat. Markets had a shortened week due to the Juneteenth holiday.

Tensions in the Middle East escalated after Israeli and Iranian forces exchanged missile and drone strikes. President Trump stated he would decide within two weeks whether to strike Iran but ruled out targeting its Supreme Leader “for now.” The delay eased oil price pressures, signaling relief among traders.

Investors now brace for two weeks of geopolitical uncertainty. Still, many view the conflict as regionally contained. Meanwhile, Fed Governor Christopher Waller indicated that an interest rate cut could come as soon as July, even as the Fed held rates steady this week. Despite cautious Fed optimism, analysts flagged weakness in housing construction as a growing economic headwind.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.