JPMorgan Connects Traditional Finance and Decentralized Finance Through Blockchain-Based Deposit Token

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JPMorgan Connects Traditional Finance and Decentralized Finance Through Blockchain-Based Deposit Token

Bitget-RWA2025/11/12 10:56

By:Bitget-RWA

- 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

Bloomberg article

. This initiative highlights JPMorgan's ongoing push to weave digital assets into its primary banking operations, placing the bank at the leading edge of the financial sector’s transition toward blockchain-based infrastructure.

JPMorgan Connects Traditional Finance and Decentralized Finance Through Blockchain-Based Deposit Token image 0

Naveen Mallela, who serves as global co-head of JPMorgan’s blockchain unit Kinexys, shared with Bloomberg that the token presents an attractive alternative to stablecoins, as it generates yield and is directly linked to customer deposits. Unlike conventional stablecoins, which are typically supported by assets such as government securities, JPM Coin acts as a digital representation of actual bank deposits, letting institutions earn interest while enabling quicker payments, as detailed in the same

Bloomberg article

. The token’s pilot, first revealed in June, included key collaborators like Mastercard,

Coinbase

, and B2C2. Reports indicate that Coinbase has accepted JPM Coin as collateral for liquidity management, as mentioned in the

Bloomberg article

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

Bloomberg article

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

Bitcoin

ETF (IBIT) during the third quarter of 2025, reflecting its ongoing involvement in the crypto space, as noted in a

Bitcoinist article

. Still, JPMorgan analysts have warned that Bitcoin’s price remains unpredictable, with projections suggesting it could reach $170,000 within 6 to 12 months based on risk-adjusted forecasts, as referenced in the

Bitcoinist article

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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