JPMorganChase is reportedly expanding its blockchain payments footprint by bringing its deposit token to Ethereum.
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JPM Coin will now be available to the bank’s institutional clients on the Ethereum network, JPMorgan representatives told Bloomberg News Monday (Oct. 19).
Emma Landriault, global head of Kinexys Labs at JPMorgan’s blockchain unit Kinexys, said in an interview with Bloomberg that the bank expects JPM Coin to be used by crypto industry customers looking for a way to make payments via blockchain, as well as financial institutions seeking digital cash to settle or collateralize transactions of tokenized assets.
As Bloomberg notes, tokenization lets traditional assets like stocks be represented and transferred using blockchain networks. Banks have spent years exploring the technology, but much of that work has focused on private networks.
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Shifting to public infrastructure brings Wall Street closer to the cryptocurrency ecosystem, giving them access to existing pools of liquidity and developer activity, the report added.
“We’ve clearly been in a year of further convergence between Wall Street and crypto,” Landriault said. “It’s not just Wall Street going to public chains, but the institutional web3 players getting more embedded and partnering with traditional financial institutions.”
In related news, PYMNTS wrote earlier this month that tokenization has a “ definition problem ,” as tokenized assets, tokenized deposits and stablecoins might all use distributed ledgers, but are economically different instruments.
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