JPMorgan just took a step that would have sounded unlikely a few years ago.
The banking giant has moved its tokenized deposit product, JPM Coin (JPMD), off its private blockchain and onto Base, Coinbase’s public Ethereum layer-2 network.
The reason is straightforward: institutional clients want to move money, post collateral, and settle trades directly on public blockchains.
JPM Coin has been around since 2019, operating on JPMorgan’s permissioned blockchain, now called Kinexys. That setup worked when on-chain activity was limited. But as more trading and settlement moved onto public networks, clients started asking for access there too.
“Right now, the only cash or cash equivalent option available on public chains are stablecoins,” said Basak Toprak, Product Head of Deposit Tokens at JPMorgan’s Kinexys Digital Payments. “There is a demand for making payments on public chains using a bank deposit product.”
Base offered what JPMorgan was looking for: a fast, low-cost Ethereum network already used by many institutional crypto firms through Coinbase.
The use cases are practical. JPM Coin on Base can be used to hold collateral and make margin payments tied to crypto transactions.
“There are asset managers or broker-dealers who have a transaction relationship with Coinbase,” Toprak said. “They keep collateral at Coinbase, and they pay margins as well.”
Until now, firms handled this either through stablecoins or traditional bank transfers. Both come with trade-offs. Bank transfers have cutoff times. Stablecoins introduce a different risk profile that some institutions are still uneasy with.
JPM Coin offers a third option which is a bank-backed deposit, now usable on public blockchain rails.
JPM Coin remains permissioned and fully controlled by the bank.
“A payment is a payment,” Toprak said. “Cash is used as collateral today in traditional finance, so it can be used as a collateral in the onchain world as well.”
Still, the move carries weight. Coinbase executive Brian Foster described tokenized deposits as the “cousin of stablecoins,” highlighting how banks are adapting as on-chain finance grows.
JPM Coin is a bank-backed deposit token issued by JPMorgan, representing real cash held at the bank, unlike stablecoins issued by private entities.
JPMorgan moved JPM Coin to Base to meet client demand for faster, always-on payments and collateral settlement directly on public blockchains.
It’s used for holding collateral, margin payments, and settling crypto-related transactions without bank cutoff times or stablecoin risks.
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