JPMorgan Launches JPM Coin on Base for 24/7 Institutional Payments
JPMorgan Chase & Co. has officially its deposit token, JPM Coin, for institutional clients, marking a significant expansion of the bank’s blockchain efforts. The token, which represents dollar deposits at JPMorgan, will operate on Base, the public blockchain affiliated with Coinbase, enabling near-instant payments around the clock.
Naveen Mallela, global co-head of JPMorgan’s blockchain division Kinexys, said the token allows clients to send and receive funds in seconds, bypassing traditional banking delays that typically occur during working hours. The launch follows a trial period involving firms such as Mastercard, Coinbase, and B2C2.
JPMorgan plans to extend access to clients of its clients in the future and to explore token versions in other currencies, pending regulatory approval. A euro-denominated deposit token is already trademarked under the ticker JPME. The bank also intends to expand JPM Coin to other blockchain networks.
Deposit tokens differ from stablecoins in that they represent a claim on existing bank deposits rather than being backed one-to-one by external assets. Unlike stablecoins, deposit tokens can yield interest to holders, making them attractive for cryptocurrency trading firms and other large-balance clients. JPM Coin will also be accepted as collateral on Coinbase.
On the appeal of deposit tokens, Mallela told Bloomberg:
“We think that stablecoins get a lot of buzz, but for institutional clients, deposit-based products offer a compelling alternative. These can be yield-bearing.”
The launch comes amid a broader trend of global banks exploring digital assets for quicker, cheaper payments, with institutions such as Citigroup, Banco Santander, Deutsche Bank, and PayPal actively experimenting in this space.
JPMorgan already operates Kinexys Digital Payments, a network handling over $3 billion in transactions daily, though this remains small compared to the bank’s $10 trillion daily payments volume.
JPMorgan’s Broader Digital-Asset Moves
JPMorgan’s launch of JPM Coin comes as the bank continues expanding its digital footprint globally. In Germany, , following a €45 million anti-money-laundering fine, showing the bank’s commitment to compliance alongside innovation.
, enabling quicker payments for businesses in the Asia-Pacific region and reflecting growing institutional adoption of blockchain-based payment answers.
Meanwhile, for its clients, signaling a broader shift toward integrating digital assets into traditional banking services. These moves highlight how JPM Coin fits into a wider strategy to modernize payments and offer real-time, blockchain-enabled answers.
