JPMorgan Expands Institutional Deposit Token JPM Coin to Ethereum Network
Summary
- JPMorgan said it is expanding JPM Coin, its dollar deposit token for institutional clients, to the Ethereum network.
- JPM Coin is designed to represent actual bank deposits in tokenized form, allowing institutional clients to make 24-hour fund transfers and settlements.
- Unfolded said the expansion shows growing use of public blockchains by banks, but added that as a regulated bank deposit token, JPM Coin is not broadly designed to integrate with decentralized finance (DeFi).
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JPMorgan is expanding JPM Coin, its dollar-denominated deposit token for institutional clients, to the Ethereum network.
Crypto information platform Unfolded reported on X on Oct. 19 that JPMorgan is extending the service to Ethereum after launching JPM Coin last year on Base, Coinbase's Ethereum layer-2 network.
JPM Coin is a tokenized representation of actual bank deposits. It is designed to allow institutional clients to transfer funds and settle payments around the clock with near real-time finality, without being limited by traditional banking hours or payment delays.
The service is offered only to institutional clients through Kinexys, JPMorgan's blockchain and digital-asset platform. Its structure differs from stablecoins that are traded by retail investors or circulate in public markets.
Unfolded said the expansion highlights a growing number of cases in which banks are using public blockchains for programmable payments and collateral management.
It added, however, that JPM Coin is a regulated bank deposit token available only to approved institutional clients. Unlike decentralized stablecoins, it is not structured for open access or broad integration with decentralized finance, or DeFi, services.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.