JPMorgan has launched JPM Coin on Coinbase’s Base public blockchain, creating a deposit‑token that represents U.S. dollar deposits held at the bank and can be transferred instantly, 24/7, between JPMorgan accounts and other network participants. The token is designed for institutional clients and bypasses the traditional clearing and settlement cycle that normally delays large‑value transfers.
The token is a regulated, fiat‑backed deposit token rather than a conventional stablecoin. Because it is backed by JPMorgan’s own deposits, it can be yield‑bearing and is subject to the bank’s regulatory oversight. The launch follows a trial run that included partners such as Mastercard, Coinbase, and B2C2, which tested the token’s speed, security, and interoperability in a real‑world environment.
JPMorgan’s move is a key milestone in its broader digital‑asset strategy. By offering instant, near‑real‑time settlement, the bank can reduce transaction costs, improve liquidity for large‑value transfers, and open a new fee‑generating revenue stream. The launch also positions JPMorgan as a leader in tokenized deposits, giving it a competitive edge over fintech firms and other banks that are exploring similar solutions.
Naveen Mallela, global co‑head of JPMorgan’s blockchain division Kinexys, said the token “delivers the security of bank‑backed deposits and settlement, combined with the speed and innovation of 24/7, near real‑time blockchain transactions, increasing efficiency and unlocking liquidity.” He added that deposit‑based products “offer a compelling alternative to stablecoins, especially for institutional clients, because they can be yield‑bearing.”
The bank plans to expand JPM Coin to its clients’ customers, to other currencies—including a euro‑denominated version that is already trademarked—and to other blockchains, pending regulatory approval. JPMorgan is also developing an interoperability framework with DBS Bank to connect tokenized deposits across different blockchains, further broadening the token’s reach.
Tailwinds for the initiative include growing institutional adoption of blockchain, clearer regulatory frameworks such as the “GENIUS Act,” and a strong demand for faster, cheaper payment solutions. Headwinds remain the need for regulatory approval to expand into other currencies and blockchains, and competition from other banks and fintechs that are also building tokenized payment platforms.
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