Wall Street giants enter the game: JPMorgan Chase launches U.S. dollar deposit token JPM Coin to enable round-the-clock transactions and second-second payments

By: Zhang Yaqi  

Source: Wall Street Insights  

As financial institutions continue to expand their presence in the digital asset space, Wall Street investment banking giant JPMorgan Chase has officially launched its U.S. dollar deposit token, JPM Coin, to institutional clients. This initiative aims to leverage blockchain technology for 24/7, real-time payment settlements, marking a pivotal step for traditional finance in the field of tokenization.  

Naveen Mallela, Co-Global Head of JPMorgan’s blockchain division Kinexys, stated in an interview that JPM Coin—this deposit token representing clients’ U.S. dollar deposits at the bank—has now been rolled out to institutional clients. Users can send and receive funds via the Base public chain, which is affiliated with Coinbase Global Inc., enabling payments to be completed in seconds and operated around the clock. This fundamentally transforms the traditional payment model that relies on business days and bank operating hours.  

Reports indicate that JPM Coin’s official launch followed several months of pilot testing, with participating companies including Mastercard, Coinbase, and B2C2. This move represents a significant expansion of JPMorgan’s blockchain initiatives and reflects an industry trend where large global financial institutions are actively exploring the use of digital assets to enhance payment efficiency and reduce costs.  

The launch comes shortly after the U.S. passed the *Genius Act*—legislation regulating stablecoins. A host of major enterprises, including Citigroup, Santander, Deutsche Bank, and PayPal Holdings Inc., are now actively testing digital asset payment solutions, signaling a growing market acceptance of compliant digital currencies.  

## What Is a Deposit Token?  

A deposit token is a digital currency issued by a commercial bank, representing a claim on an existing client deposit. Essentially, they are tokenized versions of funds already held in bank accounts, designed to enable more convenient transfers via blockchain networks.  

This differs from stablecoins, which are typically pegged to fiat currencies and backed 1:1 by government bonds or other highly liquid assets. Naveen Mallela noted:  

*“We believe that while stablecoins have garnered significant attention, deposit-based products offer a highly attractive alternative for institutional clients.”*  

A key advantage of deposit tokens over stablecoins is their ability to generate interest. Stablecoin issuers usually earn returns from their reserve assets, but these gains are generally not passed on to token holders. In contrast, deposit tokens can pay holders interest generated from their bank deposits—a feature that holds significant appeal for institutions with large balances, such as cryptocurrency trading firms that use stablecoins for fund transfers and as collateral. Mallela added that JPM Coin will be accepted as collateral by Coinbase, further expanding its use cases within the crypto ecosystem.  

## JPMorgan’s Expansion Blueprint  

JPMorgan has a clear future plan for JPM Coin. Mallela revealed that the bank intends to later expand access to JPM Coin to its clients’ own customers and, pending regulatory approval, extend it to other currency denominations. The bank has already registered the code “JPME” for a potential future euro-denominated deposit token.  

Additionally, JPMorgan aims to expand JPM Coin to other blockchain networks. The pilot program for its token code “JPMD” was first announced in June this year.  

While financial firms have explored blockchain technology for over a decade, few applications have achieved commercialization, and their scale remains small compared to traditional markets. JPMorgan is among the most active players in the financial sector: it already operates a network called Kinexys Digital Payments (formerly JPMCoin), which allows corporate clients to transfer U.S. dollars, euros, and British pounds within the bank.  

Data shows that this network currently processes over $3 billion in transactions daily, yet this still accounts for a small fraction of the approximately $10 trillion handled daily by JPMorgan’s payment division. However, as other banks—such as Bank of New York Mellon and HSBC Holdings—also explore or launch deposit token services, competition among traditional financial giants in the digital asset space is intensifying.  

## Disclaimer  

The market is risky, and investment requires caution. This article does not constitute investment advice. Users should assess whether any opinions, views, or conclusions in this article align with their specific circumstances. Any investment decisions made based on this article shall be the sole responsibility of the user.