JPMorgan Launches JPM Coin for Real-Time Institutional Settlements

JPMorgan Chase has officially launched JPM Coin (JPMD), a blockchain-based deposit token designed for its institutional clients. 

According to Bloomberg, which cited Naveen Mallela, co-head of JPMorgan’s blockchain unit Kinexys, the coin represents U.S. dollar deposits held at the bank that can, in turn, be transferred using Coinbase’s Base public blockchain.

The new system is to streamline large-value transactions between financial institutions.

Roadmap: Multi-Blockchain and Multi-Currency Expansion

JPMorgan’s ambitions for the token extend beyond its initial U.S. dollar framework. Specifically, the bank plans to expand JPM Coin to multiple blockchains and additional currencies, pending regulatory approval.

Additionally, it aims to allow clients’ clients to access the token, widening its use across global financial networks and transforming how institutions settle cross-border transactions.

Meanwhile, JPM Coin will soon be accepted as collateral on Coinbase. This, in turn, signals growing confidence in blockchain-based settlement tools and a deepening relationship between regulated banking systems and crypto infrastructure.

How Deposit Tokens Differ from Stablecoins

Although JPM Coin functions similarly to a stablecoin, it operates differently in practice. Deposit tokens represent digital claims on existing bank deposits, ensuring that each token is fully backed by client funds held at the bank.

Unlike stablecoins, which are backed by reserves and generally do not earn returns, deposit tokens can be interest-bearing, offering institutional investors both efficiency and yield potential within a regulated framework.

Growing Trend Among Global Banks

JPMorgan’s initiative reflects a larger trend among global financial institutions. For instance, Banco Santander, Citigroup, PayPal, and Deutsche Bank actively explore similar blockchain-based payment solutions to minimize transaction costs and expedite settlements.

This wave of innovation follows the U.S.’ Genius Act, establishing stablecoin regulations that direct banks in developing compliant digital assets.

Meanwhile, other major players, including HSBC and BNY Mellon, are also developing their own deposit token models. Overall, the growing participation of global banks underscores a collective move toward faster, programmable finance in the digital age.