JPMorgan rolls out JPM Coin

JPMorgan Chase has begun offering a blockchain-based token representing dollar deposits to its institutional clients. The bank introduced the asset, known as JPM Coin, on Base, the blockchain developed by Coinbase.

A Bloomberg report on Wednesday said clients can now use the token to send and receive funds on the network. Naveen Mallela, co-head of the bank’s blockchain division, said the token reflects deposits held at JPMorgan and functions as a transferable claim on those funds.

Mallela said in mid-June that a fixed amount of JPMD tokens would move to Coinbase on Base as part of a pilot. That transfer preceded broader access for Coinbase’s institutional customers. The rollout marks one of the bank’s first major steps to move deposit-based assets onto a public blockchain platform that the bank supports.

The bank said the token enables instant payments at any time. That speed contrasts with typical settlement times in the U.S. banking system. The launch followed an announcement earlier this week that JPMorgan and Singapore’s DBS are working on a framework to link their deposit token systems and enable cross-border transfers onchain.

JPMorgan did not respond to Cointelegraph’s request for comment.

JPM Coin is categorized as a deposit token. It represents a regulated bank liability rather than a stablecoin issued by a private firm. The model differs from traditional stablecoins, which rely on asset reserves to maintain value.

The bank has increased its focus on tokenization efforts. In late October, its private bank and asset management units completed the first transaction on the Kinexys Fund Flow tokenization platform. The move signaled expanding tests of blockchain-based infrastructure within the firm.

JPMorgan has also expressed interest in the wider crypto market. In late October, reports indicated the bank planned to let clients use Bitcoin and Ether as collateral for loans. In mid-January, the bank estimated that a Solana ETF could attract $3 billion to $6 billion, while an XRP ETF could bring in $4 billion to $8 billion. The firm has also been developing plans for cryptocurrency trading services.

In October, JPMorgan told its financial advisers that all clients would gain access to cryptocurrency funds. Previously, only high-net-worth investors with significant assets and a high risk tolerance could use those products.