Banks Must Upgrade Blockchain Infrastructure to Support Digital Money Adoption

Major global banks are accelerating blockchain infrastructure upgrades as they seek to deploy regulated digital money at scale. J.P. Morgan and Digital Asset announced plans to natively issue JPM Coin on the Canton Network, a privacy-preserving blockchain platform. The move would allow institutional clients to issue, transfer, and redeem JPM Coin in near real time within a secure environment.

Barclays also signaled its support for the shift, announcing a strategic investment in Ubyx Inc. The startup operates a global clearing system for tokenized deposits and stablecoins. Barclays cited the need for interoperability in digital money as a key factor in its decision.

In another development, ADI Foundation partnered with M-Pesa to bring blockchain capabilities to the mobile money platform's 60+ million users. The initiative aims to enable cross-border payments and stablecoin transactions on infrastructure designed for regulatory compliance.

Why Institutions Are Adopting Blockchain for Digital Money

The growing use of tokenized deposits and stablecoins is prompting major financial institutions to rethink their infrastructure strategies. JPM Coin, a U.S. dollar deposit token representing balances held at J.P. Morgan, will be issued directly on Canton's blockchain network. This will allow institutions to move value and settle activity in near real time.

Yuval Rooz of Digital Asset emphasized that the integration aligns with a broader trend in how institutions are approaching digital money. He noted that Canton provides the privacy, compliance, and interoperability required for large-scale adoption of deposit tokens and tokenized assets.

What Investors Should Watch for in 2026

The integration of JPM Coin on Canton follows a phased approach expected to continue through 2026. Initial work will focus on technical and business frameworks required to support native issuance, transfer, and redemption of the token. Future phases may explore additional blockchain-based deposit products.

Barclays' investment in Ubyx highlights the industry's focus on building infrastructure for tokenized money. The bank emphasized the importance of specialist technology in enabling regulated financial institutions to interact seamlessly across different blockchains.

ADI Foundation's partnership with M-Pesa provides a model for how existing mobile money platforms can integrate blockchain capabilities. The infrastructure is designed to operate within local regulatory frameworks while supporting cross-border payments and stablecoin transactions.

The ADI Chain employs zero-knowledge proof systems and advanced cryptography to ensure transaction privacy and regulatory compliance. The network also partners with major blockchain infrastructure providers like Alchemy and WalletConnect to support scalability and user adoption.