JPMorgan has officially launched its deposit token, JPM Coin, on Base, a public blockchain affiliated with Coinbase. This token allows institutional clients to make instant transfers 24/7. The initiative aims to transform traditional settlement processes and meet the increasing demand for blockchain-based payment solutions.
JPM Coin Enables Near-Instant Transfers and Broader Functionality
According to a Bloomberg report, JPM Coin provides direct claims on dollar deposits held at JPMorgan and operates as a regulated digital deposit token distinct from traditional stablecoins.
Unlike stablecoins, which are backed by external reserves and do not bear interest, JPM Coin allows institutional clients to move funds seamlessly, settle payments in seconds at any time, and earn interest on balances. The launch concluded a months-long pilot with partners such as Mastercard, Coinbase, and B2C2, and the token now settles treasury operations, cross-border liquidity moves, and large institutional payments on Base.
The deployment on Base, an Ethereum Layer 2 built by Coinbase, brings added interoperability. This allows JPM Coin to connect with smart contracts and automated finance tools. Additionally, there are plans for future rollouts to additional public blockchains. JPMorgan also plans to extend access to multi-currency deposit tokens and collateral functionality in a phased approach after regulatory review.
Value Addition to Institutional Payments and Crypto Integration
JPMorgan’s development signals accelerated blockchain adoption among large financial institutions. The move to 24/7 real-time settlement eliminates banking delays, reduces liquidity costs, and enables efficient treasury management beyond business hours.
With each token fully backed by U.S. dollar deposits, banks and institutional clients gain access to secure, regulated transactions while avoiding the risks associated with unregulated stablecoins or external custody.
This initiative is part of a broader trend: Citigroup, Deutsche Bank, and Banco Santander are also piloting digital deposit tokens to streamline payments, enhance transparency, and foster integration between fiat and crypto business models.
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