JPMorgan Turns to Coinbase’s Base as JPM Coin Goes Public

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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.

Why JPMorgan Took JPM Coin Public

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.

Base offered what JPMorgan was looking for: a fast, low-cost Ethereum network already used by many institutional crypto firms through Coinbase.

Also Read: BREAKING: JPMorgan Debuts Ethereum Tokenized Money-Market Fund

What JPM Coin Will Be Used for on Base

The use cases are practical. JPM Coin on Base can be used to hold collateral and make margin payments tied to crypto transactions.

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.

A Clear Direction Ahead

JPM Coin remains permissioned and fully controlled by the bank.

Still, the move carries weight. Coinbase executive Brian Foster described tokenized deposits as the “cousin of stablecoins,” highlighting how banks are adapting as onchain finance grows.