JPMorgan Launches Blockchain-Based JPM Coin for Institutional Transfers
JPMorgan Chase has officially launched its blockchain-based deposit token, JPM Coin, for institutional clients, marking a significant step in integrating digital assets into traditional banking infrastructure.
The new token represents U.S. dollar deposits held at the bank, allowing institutions to send and receive money via Coinbase’s Base public blockchain, according to a Bloomberg report published on Wednesday.
Instant, 24/7 Blockchain Payments
Naveen Mallela, Global Co-Head of JPMorgan’s blockchain division Kinexys, said the rollout will enable instant, 24/7 payments, effectively removing delays associated with traditional banking systems.
Mallela added that JPMorgan plans to expand JPM Coin to other blockchains, positioning the bank as a frontrunner in institutional blockchain integration.
“We think that stablecoins get a lot of buzz, but for institutional clients, deposit-based products offer a compelling alternative,” Mallela said.
Expanding Access and Functionality
The rollout follows successful pilot tests with major institutions, including Mastercard, Coinbase, and B2C2. Coinbase is reportedly preparing to accept JPM Coin as collateral for transactions and liquidity operations.
JPMorgan also intends to make the token available to clients of its clients at a later stage and expand its use to other currency denominations, pending regulatory approval.
Mallela explained that deposit tokens differ from stablecoins in structure and purpose. While stablecoins are typically issued by private firms, deposit tokens are fully backed by client funds already held at the bank, offering a regulated and yield-bearing alternative for on-chain transactions.
Strengthening Blockchain Adoption in Global Finance
In June, JPMorgan trademarked and launched “JPMD”, its first deposit token on the Coinbase Base network, backed 1:1 by U.S. dollars and available exclusively to institutional clients.
This latest rollout reinforces JPMorgan’s ongoing mission to modernize payment systems and integrate blockchain into the core of institutional finance.
The move comes as global banks increasingly explore tokenized deposits and digital currencies to enable faster, cheaper cross-border transactions. Firms such as Citigroup, Banco Santander, Deutsche Bank, PayPal, and BNY Mellon are all developing blockchain-based solutions to enhance settlement speed and transparency.
Meanwhile, the Bank of Korea recently announced its own central bank deposit token initiative built on public blockchains, describing it as a “type of stablecoin” aimed at maintaining control over digital money issuance.
Linking Institutional Blockchain Efforts
The launch of JPM Coin also complements JPMorgan’s recent collaboration through Kinexys with DBS Bank to develop an interoperability framework for cross-bank tokenised deposits across public and permissioned blockchains. Together, these initiatives underscore the global shift toward interconnected, blockchain-based financial ecosystems.
