JPMorgan Launches Blockchain-Based JPM Coin for Institutional Players

JPMorgan JPM has rolled out a blockchain-based deposit token, JPM Coin, for institutional investors. This represents dollar deposits at the bank and allows users to transfer money through Coinbase’s COIN Base public blockchain.

It allows JPM’s institutional clients to send payments almost instantly, at any time, with near-zero cost and real-time settlement, even for cross-border transactions.

JPMorgan plans to extend the service to other blockchains besides Base, according to a Cryptonews article citing a Bloomberg interview with Naveen Mallela, global co-head of blockchain division Kinexys at JPMorgan.

JPMorgan is planning to expand the accessibility of the token to clients of its clients at a later stage. It will also expand to other currency denominations, subject to regulatory approvals, according to Mallela.

Rationale Behind JPM Coin

In June 2025, JPMorgan filed a trademark application for “JPMD” with the United States Patent and Trademark Office (USPTO). The company introduced JPM Coin in 2019 for wholesale payments, which was processing $1 billion in daily transactions by 2023.

The rollout follows successful pilot tests with major firms including B2C2, Coinbase and Mastercard. Coinbase is reportedly preparing to use JPM Coin as collateral for its transactions and liquidity needs.

Mallela described deposit tokens as “yield-bearing,” unlike stablecoins. They represent digital claims on funds that are already held in client bank accounts, created to enable smooth blockchain-based transactions.

“We think that stablecoins get a lot of buzz, but for institutional clients, deposit-based products offer a compelling alternative,” Mallela added.

The launch aligns with rising institutional demand for stablecoin-like capabilities, offering a regulated deposit-based alternative. Also, it is likely to help JPM’s financials by boosting payment volumes, cutting settlement costs and creating new on-chain revenue opportunities, all while keeping institutional liquidity within its own deposit base instead of shifting to stablecoins. This move also strengthens JPM’s long-term positioning in tokenized payments and future on-chain financial markets.

JPMorgan’s Price Performance & Zacks Rank

So far this year, JPMorgan shares have rallied 33.7% compared with the industry’s growth of 31.9%.

Currently, JPM carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Crypto Ventures by Other Major Banks

Last month, Citigroup C and Coinbase announced their intention to collaborate on digital asset payment capabilities for Citi’s institutional clients and explore additional global clients in the future, further solidifying both companies’ market leadership in payment solutions.

The partnership with Coinbase extends Citigroup’s strategy of developing next-generation payment solutions for a 24/7 digital money environment, complementing offerings like Citi Token Services and 24/7 USD Clearing that already provide real-time, always-available capabilities for institutional clients.

Similarly, Coindesk reported, citing a Bloomberg article, that Bank of New York Mellon BK is experimenting with tokenized deposits as part of its effort to upgrade its global payments infrastructure and stay aligned with the broader move toward blockchain-driven finance.

BK’s move will enable its clients to make payments using a tokenized version of their deposits. These deposits would run on a blockchain, allowing almost immediate settlement and potentially lowering transaction costs.

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This article originally published on Zacks Investment Research (zacks.com).

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