JPMorgan Chase & Co. (NYSE: JPM) has come a long way in crypto. At one point, they looked skeptically at anything related to blockchain or digital assets.
CEO Jamie Dimon, who called Bitcoin a “fraud” in 2017, has since softened his stance, acknowledging that “blockchain is real.”
Analysts view the move as coming full circle for Wall Street’s largest bank, signaling the acceptance of crypto in traditional finance.
But the bank has now taken a new step that reinforces its growing role in the digital asset ecosystem.
JPMorgan Chase & Co. has officially launched its blockchain-powered custodial token, JPM Coin (JPMD), for institutional clients, as reported by Bloomberg on November 12.
The token, representing dollar deposits at the world’s largest bank, enables instant money transfers on Coinbase’s Base blockchain, operating 24/7 instead of traditional bank business hours.
According to Naveen Mallela, global co-head of Kinexys, JPMorgan’s blockchain division, the launch follows successful trials involving Mastercard, Coinbase and B2C2.
From calling Bitcoin a “fraud” to deploying deposit tokens, Jamie Dimon has come a long way. MICHEL EULER/PISCINE/AFP via Getty Images
The bank plans to expand access to customers and introduce multi-currency support, including a euro-backed version under the JPME brand, pending regulatory approval.
JPMorgan is steadily expanding its blockchain use cases. By the end of the year, the bank plans to allow institutional clients to use Bitcoin (BTC) and Ether (ETH) as collateral for their loans.
“We think there is a lot of buzz around stablecoins, but for institutional clients, deposit-based tokens offer an attractive, yield-generating alternative,” Mallela said.
Deposit tokens like JPM Coin differ from stablecoins like Tether (USDT) or USD Coin (USDC).
Deposit tokens are issued by licensed banks and represent claims on actual deposits held in the banking system, subjecting them to strict financial supervision and are backed by insured funds. It is essentially “banking money on blockchain,” enabling real-time settlement between institutions while maintaining the security of traditional deposits.
Stablecoins, on the other hand, are issued by private fintech or crypto companies outside of banking. Although they are generally pegged to the US dollar, they depend on the transparency and governance of the issuer’s reserves.
