JPMorgan issues deposit token JPMD on the Coinbase chain.

JPMorgan Chase has launched a deposit token called JPM Coin supported by cash reserves to institutional clients on Coinbase's Base Layer 2 blockchain, marking a key step for Wall Street's major investment banks in the digital assets space. The token represents US dollar deposits held at JPMorgan Chase and enables 24/7, near-instant settlement, significantly speeding up the process compared to the days it takes for traditional banks to clear transactions. Naveen Malarela, Co-Head of Kinexys, JPMorgan Chase's blockchain department, stated, "JPM Coin combines the security of bank guarantees with the efficiency of real-time blockchain transactions, greatly improving liquidity and settlement efficiency." This move also signifies a significant shift in stance from JPMorgan Chase CEO Jamie Dimon. Dimon, who had previously called Bitcoin a "fraud," now acknowledges that "blockchain is a real thing," although he still believes it cannot replace all traditional systems. Earlier, JPMorgan Chase had conducted trials with Mastercard, Coinbase, and market maker B2C2 among others for several months. Unlike stablecoins, deposit tokens are based on actual bank deposits, accrue interest, and are therefore more favored by institutions. JPMorgan Chase plans to expand the token to include multiple currencies and multiple chain versions, with the Euro token code JPME already registered. Additionally, the Kinexys platform under JPMorgan Chase has processed over $15 trillion in nominal transaction volume to date, with a daily average volume of around $2 billion, although still significantly lower than the bank's traditional payment business which processes around $100 trillion daily. Nonetheless, its significance in the financialization of blockchain is substantial.