JPMorgan Connects Traditional Finance and Decentralized Finance Through Blockchain-Based Deposit Token
- JPMorgan launches JPM Coin, a blockchain-based deposit token for institutional clients, enabling instant settlements via Coinbase's Base network. - The yield-bearing token represents USD deposits, offering faster transactions than stablecoins and expanding to euros and other blockchains. - JPMorgan bridges TradFi and DeFi by leveraging public blockchain infrastructure, aligning with industry trends toward faster, lower-cost payment systems . - The bank increased BlackRock Bitcoin ETF holdings by 64% in Q
JPMorgan Chase & Co. has made a notable advance in tokenized banking by introducing JPM Coin, a blockchain-powered deposit token designed for institutional customers. This token, which stands for U.S. dollar deposits held at the bank, enables users to transfer and receive funds through Coinbase's Base public blockchain, offering nearly instant settlements and round-the-clock transaction capabilities, according to a
JPMorgan intends to broaden access to the token for its clients’ clients and to roll out versions in other currencies, subject to regulatory clearance. The bank has already secured the trademark "JPME" for a possible euro-based deposit token. Mallela also suggested that the bank may expand to additional blockchain platforms in the future, stressing the importance of interoperability as digital assets continue to evolve, according to the
This launch highlights JPMorgan’s commitment to integrating with public blockchain systems, a strategy also being pursued by institutions like Citigroup, Deutsche Bank, and PayPal. By utilizing Coinbase’s Base network—a Layer 2 protocol compatible with Ethereum—JPMorgan is connecting traditional financial services (TradFi) with decentralized finance (DeFi), allowing institutional users to engage with open financial applications. This step comes after the U.S. enacted the Genius Act, aimed at stablecoin regulation, and demonstrates the banking sector’s increasing focus on faster and more cost-effective payment solutions.
Although JPMorgan’s move into tokenized deposits is significant, it is part of a larger trend of digital asset innovation. For example, the bank recently reported a 64% rise in its holdings of BlackRock’s
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