Wall Street giant enters the arena: JPMorgan Chase launches dollar deposit token JPM Coin for 24/7 trading and instant payments
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Wall Street giant enters the arena: JPMorgan Chase launches dollar deposit token JPM Coin for 24/7 trading and instant payments
Deposit tokens generate interest, have been adopted by mainstream institutions such as Coinbase, provide an innovative model for the integration of traditional finance and digital assets, and are accelerating global competition among industry giants.
Navigating Web3 tides with focused insightsBy: Zhang Yaqi
Source: Wall Street Insights
As financial institutions continue expanding their footprint in the digital asset space, Wall Street investment banking giant JPMorgan Chase has officially launched its dollar deposit token, JPM Coin, to institutional clients. This move aims to leverage blockchain technology for 24/7, near-instant payment settlements, marking a key step for traditional finance into the realm of tokenization.
Naveen Mallela, Global Co-Head of JPMorgan’s blockchain unit Kinexys, said in an interview that the deposit token, JPM Coin, represents customers’ U.S. dollar deposits at the bank and is now being rolled out to institutional clients. Users can send and receive funds via Base, the public blockchain affiliated with Coinbase Global Inc., enabling payments to settle within seconds and operate around the clock—transforming the traditional model reliant on business days and banking hours.
According to reports, the official launch of JPM Coin followed several months of trial operations involving companies including Mastercard, Coinbase, and B2C2. The rollout marks a significant expansion of JPMorgan’s blockchain initiatives and reflects a broader industry trend among major global financial institutions exploring digital assets to enhance payment efficiency and reduce costs.
The release comes after the U.S. passed the Genius Act, which regulates stablecoins, with large firms such as Citigroup, Santander, Deutsche Bank, and PayPal Holdings Inc. actively testing digital asset payment solutions—signaling growing market acceptance of compliant digital currencies.
What Is a Deposit Token?
A deposit token is a digital currency issued by commercial banks representing a claim on existing customer deposits. In essence, it is a tokenized version of funds already held in a bank account, designed to enable easier transfers via blockchain networks.
This differs from stablecoins, which are typically pegged to fiat currencies and backed one-to-one by government bonds or other highly liquid assets. According to Naveen Mallela:
“We believe that while stablecoins have received significant attention, deposit-based products offer an attractive alternative for institutional clients.”
A key advantage of deposit tokens over stablecoins is their ability to earn interest. Stablecoin issuers typically generate yield from their reserve assets, but this return is generally not passed on to token holders. In contrast, deposit tokens can pay interest generated from the underlying bank deposits—an especially compelling feature for institutions holding large balances, such as crypto trading firms using stablecoins for fund transfers and collateral. Mallela added that JPM Coin will be accepted by Coinbase as collateral, further expanding its use cases within the crypto ecosystem.
JPMorgan's Expansion Roadmap
JPMorgan has a clear vision for the future of JPM Coin. Mallela revealed the bank plans to eventually extend access to the token to clients’ own clients and, with regulatory approval, expand it to other currencies. The bank has already registered the code JPME for a potential euro-denominated deposit token.
In addition, JPMorgan intends to expand JPM Coin to other blockchain networks. A pilot program using the token code JPMD was first announced as early as June this year.
Although financial firms have explored blockchain technology for over a decade, few applications have achieved commercial scale, and usage remains small compared to traditional markets. JPMorgan is one of the most active players in the sector, already operating a network called Kinexys Digital Payments (formerly JPMCoin), allowing corporate clients to transfer U.S. dollars, euros, and British pounds through the bank.
Data shows the network currently processes over $3 billion in transactions daily—still only a fraction of the approximately $10 trillion handled daily by the bank’s broader payments division. However, with other banks such as BNY Mellon and HSBC Holdings also exploring or having launched deposit token services, competition among traditional financial giants in the digital asset space is intensifying.
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