JPMorgan Bridges TradFi and DeFi With Blockchain Deposit Token

JPMorgan Chase & Co. has taken a significant step into tokenized banking with the launch of its blockchain-based deposit token, JPM Coin, for institutional clients. The token, representing U.S. dollar deposits held at the bank, allows users to send and receive funds via Coinbase's Base public blockchain, enabling near-instant settlements and 24/7 processing, as reported in a Bloomberg article. This move marks JPMorgan's latest effort to integrate digital assets into core banking services, positioning it at the forefront of a broader industry shift toward blockchain-driven financial infrastructure.

Naveen Mallela, global co-head of JPMorgan's blockchain division Kinexys, told Bloomberg that the token offers a compelling alternative to stablecoins, as it is yield-bearing and directly tied to customer deposits. Unlike traditional stablecoins, which are often backed by reserves like government bonds, JPM Coin functions as a digital claim on existing bank deposits, allowing institutions to earn interest while facilitating faster transactions, as reported in the same Bloomberg article. The token's pilot program, announced in June, involved major partners such as Mastercard, Coinbase, and B2C2, with Coinbase reportedly accepting JPM Coin as collateral for liquidity operations, as reported in the Bloomberg article.

JPMorgan plans to expand the token's accessibility to clients of its clients and introduce versions in additional currencies, pending regulatory approval. The bank has already trademarked "JPME" for a potential euro-denominated deposit token. Mallela also hinted at future expansions to other blockchain networks, emphasizing the need for interoperability in a rapidly evolving digital asset landscape, as noted in the Bloomberg article.

The launch underscores JPMorgan's strategic alignment with public blockchain infrastructure, a trend mirrored by peers like Citigroup, Deutsche Bank, and PayPal. By leveraging Coinbase's Base network—a Layer 2 solution compatible with Ethereum—JPMorgan is bridging traditional finance (TradFi) and decentralized finance (DeFi), enabling institutional clients to interact with permissionless financial applications. This development follows the U.S. passage of the Genius Act, which seeks to regulate stablecoins, and reflects banks' growing interest in faster, lower-cost payment systems.

While JPMorgan's foray into tokenized deposits is notable, it also operates within a broader ecosystem of digital asset experimentation. For instance, the bank recently disclosed a 64% increase in its holdings of BlackRock's Bitcoin ETF (IBIT) during Q3 2025, signaling continued crypto market engagement, as reported in a Bitcoinist article. However, JPMorgan's analysts have also cautioned that Bitcoin's price trajectory remains volatile, with expectations of a potential rise to $170,000 over 6–12 months based on risk-adjusted models, as noted in the Bitcoinist article.