Original source: www.thestreet.com/crypto/business/jpmorgan-launches-blockchain-based-deposit-token
Shared with: ReadToRelay browser extension
JPMorgan & Chase expands blockchain reach.
JPMorgan Chase & Co. (NYSE: JPM) has come a long way when it comes to crypto. At one point, they used to look at anything blockchain or digital assets with skepticism.
CEO Jamie Dimon, who famously called Bitcoin a “fraud” in 2017, has since softened his stance, acknowledging that “the blockchain is real.”
Analysts view the move as a full-circle moment for Wall Street’s largest bank, signaling crypto’s acceptance in mainstream finance.
But the bank has now made another milestone move that reinforces the bank’s growing role in the digital asset ecosystem.
JPMorgan launches deposit token
JPMorgan Chase & Co. has officially launched its blockchain-powered deposit token, JPM Coin (JPMD), for institutional clients, as reported by Bloomberg on Nov. 12.
The token, representing dollar deposits at the world’s largest bank, enables instant money transfers on Coinbase’s Base blockchain, operating 24/7 instead of traditional banking hours.
Scroll to Continue
Recommended Articles
According to Naveen Mallela, global co-head of Kinexys, JPMorgan’s blockchain division, the launch follows successful trials involving Mastercard, Coinbase, and B2C2.
From calling Bitcoin a “fraud” to rolling out deposit tokens, Jamie Dimon has come a long way.
MICHEL EULER/POOL/AFP via Getty Images
The bank plans to extend access to clients’ clients and introduce multi-currency support, including a euro-backed version under the trademark JPME, pending regulatory approval.
JPMorgan is steadily expanding its blockchain use cases. By the end of the year, the bank is planning to allow institutional clients to use Bitcoin (BTC) and Ether (ETH) as collateral for loans.
“We think that stablecoins get a lot of buzz, but for institutional clients, deposit-based tokens offer a compelling, yield-bearing alternative,” Mallela said.
More News:
- Cathie Wood buys $9.2 million of Ethereum-treasury stock
- Coinbase launches new platform for early access to digital assets
- Crypto Confession: 'I decided to touch my parents’ investment. They had no idea. Fast forward, I lost everything'
Deposit tokens vs stablecoins
Deposit tokens like JPM Coin differ from stablecoins such as Tether (USDT) or USD Coin (USDC) because they represent actual deposits held at regulated banks, combining blockchain efficiency with traditional financial safeguards. The concept aligns with recent developments under the GENIUS Act in the United States, which formalizes stablecoin regulation and encourages innovation in tokenized banking.
Industry peers, including Citigroup, Deutsche Bank, Banco Santander, and PayPal, are also exploring blockchain settlement tools.