JPMorgan has taken a notable step in its digital payments strategy by moving its tokenized dollar deposits onto a public blockchain, signaling how large banks are adapting to growing institutional demand for onchain settlement. The bank recently enabled its tokenized deposit product, commonly referred to as JPM Coin, to operate on Coinbase’s Base network after years of running similar services on a private, permissioned blockchain. The shift reflects customer demand for making payments and managing collateral directly on public chains, where activity in crypto markets and tokenized assets increasingly takes place. JPMorgan positions the product as a digital representation of bank deposits rather than a traditional stablecoin, offering clients a familiar cash equivalent that can be used for payments, margin, and collateral while remaining within the regulated banking system.
The move highlights a gap that banks believe exists in the current crypto ecosystem, where stablecoins are often the only widely available cash equivalent on public blockchains. JPMorgan argues that institutional clients want access to bank backed deposit products that carry a different risk profile from stablecoins, particularly for large scale transactions and regulated counterparties. By allowing tokenized deposits to function on a public network, the bank aims to reduce inefficiencies tied to traditional offchain settlement, such as cutoff times and delayed transfers. At the same time, JPMorgan has emphasized that the product remains permissioned, with transfers limited to approved participants, allowing the bank to retain control over compliance, custody, and risk management while still engaging with public blockchain infrastructure.
The expansion also reflects how major banks are positioning themselves as stablecoins grow in scale and usage. Tokenized deposits serve a similar role in payments and collateral management, raising questions about how banks and stablecoin issuers will coexist or compete over time. JPMorgan has stressed that its approach prioritizes controlled deployment, internal governance, and smart contract oversight to manage risks associated with public networks. As more institutions explore onchain finance, the move suggests that public blockchains are increasingly being viewed as core financial infrastructure rather than experimental technology. JPMorgan’s decision may encourage other banks to explore similar models, blending traditional deposits with blockchain based settlement to meet evolving client expectations.
