JPMorgan Launches Blockchain-Based JPM Coin for Institutional Players
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JPMorgan JPM has rolled out a blockchain-based deposit token, JPM Coin, for institutional investors. This represents dollar deposits at the bank and allows users to transfer money through Coinbase’s COIN Base public blockchain.It allows JPM’s institutional clients to send payments almost instantly, at any time, with near-zero cost and real-time settlement, even for cross-border transactions.JPMorgan plans to extend the service to other blockchains besides Base, according to a Cryptonews article citing a Bloomberg interview with Naveen Mallela, global co-head of blockchain division Kinexys at JPMorgan.JPMorgan is planning to expand the accessibility of the token to clients of its clients at a later stage. It will also expand to other currency denominations, subject to regulatory approvals, according to Mallela.Rationale Behind JPM CoinIn June 2025, JPMorgan filed a trademark application for “JPMD” with the United States Patent and Trademark Office (USPTO). The company introduced JPM Coin in 2019 for wholesale payments, which was processing $1 billion in daily transactions by 2023.The rollout follows successful pilot tests with major firms including B2C2, Coinbase and Mastercard. Coinbase is reportedly preparing to use JPM Coin as collateral for its transactions and liquidity needs.Mallela described deposit tokens as “yield-bearing,” unlike stablecoins. They represent digital claims on funds that are already held in client bank accounts, created to enable smooth blockchain-based transactions.“We think that stablecoins get a lot of buzz, but for institutional clients, deposit-based products offer a compelling alternative,” Mallela added.The launch aligns with rising institutional demand for stablecoin-like capabilities, offering a regulated deposit-based alternative. Also, it is likely to help JPM’s financials by boosting payment volumes, cutting settlement costs and creating new on-chain revenue opportunities, all while keeping institutional liquidity within its own deposit base instead of shifting to stablecoins. This move also strengthens JPM’s long-term positioning in tokenized payments and future on-chain financial markets.JPMorgan’s Price Performance & Zacks RankSo far this year, JPMorgan shares have rallied 33.7% compared with the industry’s growth of 31.9%.Image Source: Zacks Investment ResearchCurrently, JPM carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Crypto Ventures by Other Major BanksLast month, Citigroup C and Coinbase announced their intention to collaborate on digital asset payment capabilities for Citi’s institutional clients and explore additional global clients in the future, further solidifying both companies’ market leadership in payment solutions.The partnership with Coinbase extends Citigroup’s strategy of developing next-generation payment solutions for a 24/7 digital money environment, complementing offerings like Citi Token Services and 24/7 USD Clearing that already provide real-time, always-available capabilities for institutional clients.Similarly, Coindesk reported, citing a Bloomberg article, that Bank of New York Mellon BK is experimenting with tokenized deposits as part of its effort to upgrade its global payments infrastructure and stay aligned with the broader move toward blockchain-driven finance.BK’s move will enable its clients to make payments using a tokenized version of their deposits. These deposits would run on a blockchain, allowing almost immediate settlement and potentially lowering transaction costs.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report The Bank of New York Mellon Corporation (BK): Free Stock Analysis Report Coinbase Global, Inc. (COIN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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