JPMorgan migrates its JPM Coin to Coinbase's public blockchain Base

Six years after launching its own private blockchain, JPMorgan Chase is radically changing strategy. The bank has just transferred its digital deposit token, the JPM Coin, to Base, Coinbase’s public network. A major turning point for an institution that until now had exclusively relied on its closed ecosystem Kinexys.

Why is JPMorgan abandoning its private blockchain?

JPMorgan launched its tokenized deposit project in 2019 on Kinexys, a private version of Ethereum. For six years, only approved institutional clients could use this closed system to transfer funds internally. Transaction settlement was uninterrupted but remained confined to a controlled ecosystem.

Today, the situation is changing. Basak Toprak, product manager for deposit tokens at Kinexys Digital Payments, explains simply: “Stablecoins are currently the only payment option available on public blockchains. Our institutional clients want to make payments with a banking deposit product.“

Customer pressure has therefore pushed the bank out of its comfort zone.

The choice of Base is no accident. This blockchain, developed by Coinbase, offers transaction fees significantly lower than Ethereum’s while benefiting from its recognized security. For JPMorgan, which processes $10 trillion daily, the equation is clear: a public network becomes more suitable than a private infrastructure.

Mastercard and Coinbase have already successfully tested the JPM Coin on Base since its launch on November 12. This cross-validation shows that the technical integration works and that major financial sector players are ready to take the step.

A new playground for collateral and margin payments

The JPMMD opens concrete prospects for market operations. Clients can now use their tokenized bank deposits as collateral or to make margin payments when purchasing cryptos. 

Toprak emphasizes the naturalness of this evolution:

Cash already serves as collateral in traditional finance. It can therefore also serve as collateral in the blockchain world.

This approach fills a gap. Currently, blockchain transactions require either stablecoins or traditional off-chain bank transfers. Both options have their limits. Traditional bank accounts impose opening hours and settlement delays. Stablecoins, meanwhile, present different risks for institutions accustomed to regulated deposits.

The JPMMD positions itself as a third way. Unlike open stablecoins such as USDC or USDT, this token remains under strict banking control. Only clients who have completed the registration process with JPMorgan can transfer it. This structure allows the bank to extend its activities on a public infrastructure without abandoning its governance or regulatory compliance.

Brian Foster, global head of wholesale sales at Coinbase, describes these “tokenized deposits” as “cousins of stablecoins.” He refuses to decide which model is superior: “The market will tell us. Banks need to figure out how to export this product beyond their walls.” 

JPMorgan has just taken a major step in the history of banking tokenization. By migrating to Base, the bank acknowledges that the future of finance passes through public blockchains. It remains to be seen whether other banking giants will follow this path or if JPMorgan will keep its lead in this innovation race.