JPMorgan Chase & Co. Unveils “JPM Coin” Deposit Token to Bridge Traditional Banking and Blockchain
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Written by
Simonas Brazionis - Updated 2025-11-12 13:29:17
JPMorgan Chase & Co. has introduced its new deposit token, the “JPM Coin,” marking a major step into the blockchain ecosystem and enabling traditional bank deposits to operate within it.
The JPM Coin (JPMD) represents USD deposits in a digital form, allowing for 24/7 transactions. Unlike stablecoins, the JPM Coin does not rely on a neutral reserve structure but serves as a digital claim to existing bank deposits. Currently, the token is designed for institutional clients, with plans to expand to additional currencies and networks in the future.
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Blockchain Dollar for Institutions
The JPM Coin, built on Coinbase’s Base blockchain, facilitates near-instant transactions compared to traditional bank transfers that rely on business hours and intermediaries. The pilot phase of the project involved Mastercard, Coinbase, and B2C2. JPMorgan positions the token as a solution for institutions seeking blockchain-based banking services, rather than a typical stablecoin model.
In addition to the USD version, JPMorgan plans to launch a euro-denominated token, JPME, and explore the possibility of using JPM Coin as collateral with partners like Coinbase.
Transforming Traditional Banking
With the introduction of JPM Coin, JPMorgan is demonstrating how traditional banks can use digital technologies to modernize deposit and payment systems. By linking bank deposits to blockchain networks, JPMorgan is offering institutional clients opportunities for real-time transfers and the use of tokens as collateral.
Key Differences from Stablecoins
JPMorgan's move comes as Swiss banks like UBS, PostFinance, and Sygnum Bank test similar “deposit token” concepts in response to the rise of stablecoins. Unlike stablecoins, which are fully backed by liquid assets such as government bonds and cash equivalents, “deposit tokens” are partially backed by real assets like bank-held deposits. This structural difference highlights the risks involved in the event of a bank run, with traditional stablecoins offering more robust protection.
For example, stablecoin issuers are legally required to back their digital dollars with liquid assets, unlike bank deposits, which are not bound by this obligation. In Switzerland, only deposits up to CHF 100,000 are guaranteed by the government, whereas in the U.S., the limit is slightly higher at USD 250,000 (FDIC).
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