Creating embroidery designs is possible from both vector and bitmap sources, so jpg to csd conversion is certainly possible. Whilst it is somewhat easy from vector graphics, it can be pretty tedious from a raster picture. You will need to look for an embroidery program with digitizing function, ie. a function that allows users to make embroidery designs (like .csd fils for Poe, Huskygram or Singer machines) from JPEG sources (.jpg or .jpeg files).
Open JPG file Open CSD fileAn embroidery designs manager
An embroidery design tool from Janome
An easy embroidery and apparel decoration design software