JPMorgan Chase & Co. (JPM): A Bull Case Theory

We came across a bullish thesis on JPMorgan Chase & Co. on Valueinvestorsclub.com by RaisingCapital. In this article, we will summarize the bulls’ thesis on JPM. JPMorgan Chase & Co.'s share was trading at $305.56 as of September 11th. JPM’s trailing and forward P/E were 15.67 and 15.22 respectively according to Yahoo Finance.

JPMorgan (JPM) and other too-big-to-fail (TBTF) banks are uniquely positioned to benefit from the emerging stablecoin opportunity, offering investors a way to gain exposure to crypto-based innovation without the speculative risks of pure-play issuers like Circle (CRCL). JPM’s recent launch of its deposit token, JPMD, on Coinbase’s Base blockchain gives it a first-mover advantage among major U.S. banks, enabling 24/7 settlement and institutional-scale adoption.

Unlike traditional stablecoins, JPMD functions as a regulated deposit token under fractional banking rules, allowing banks to maintain capital requirements while generating revenue from blockchain-enabled deposits. With JPMorgan’s existing Kinexys infrastructure processing $2 billion daily in blockchain transactions, the bank can scale JPMD rapidly, capturing a meaningful share of institutional demand. The broader stablecoin market, which facilitated $35 trillion in transfers in 2024 and now surpasses Visa and Mastercard in transaction volume, illustrates the potential for revenue expansion and operational efficiency. U.S. regulatory developments, particularly the GENIUS Act, further enhance the banks’ positioning by creating a federal framework that favors regulated bank-issued stablecoins while limiting competition from FinTechs and tech giants.

By issuing stablecoins, TBTF banks can deploy deposits into high-quality liquid assets like U.S. Treasuries, unlocking up to $6.8 trillion in purchasing power, boosting net interest margins, and reducing compliance costs through AI-driven blockchain transparency. The Federal Reserve’s recent SLR exemption for Treasuries further increases balance sheet capacity, amplifying earnings and ROE. In sum, stablecoin adoption allows TBTF banks to consolidate their deposit base, reduce operational costs, and generate significant regulatory-compliant returns, positioning their stock for substantial upside while simultaneously supporting U.S. government debt refinancing.

Previously we covered a bullish thesis on JPMorgan Chase & Co. (JPM) by Pacific Northwest Edge in March 2025, which highlighted the bank’s strong deposit base, profitable lending model, and resilience during crises. The company's stock price has appreciated approximately 27% since our coverage. The thesis still stands as JPM’s scale and stability remain compelling. RaisingCapital shares a similar view but emphasizes value creation from JPM’s stablecoin initiative and regulatory tailwinds.

JPMorgan Chase & Co. is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 124 hedge fund portfolios held JPM at the end of the second quarter which was 123 in the previous quarter. While we acknowledge the potential of JPM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.