Written by: Yi He
J.P. Morgan Chase & Co., headquartered in New York, USA, has total assets of $4 trillion and total deposits of up to $1.5 trillion, with more than 6,000 branches, making it one of the largest financial services institutions in the United States.
J.P. Morgan was formed in 2000 from the merger of Bank One Manhattan and J.P. Morgan & Co., and acquired Chicago First Bank, Bear Stearns, and Washington Mutual Bank. J.P. Morgan is a multinational financial services institution and one of the largest banks in the United States, operating in more than 60 countries, including investment banking, financial transaction processing, investment management, commercial financial services, and personal banking.
In the wave of global financial digital transformation, J.P. Morgan, as a large traditional bank, is also actively embracing blockchain technology and digital currency applications. The bank particularly focuses on new financial infrastructure such as asset tokenization, stablecoins, and on-chain settlement, and has launched several pilot projects both internally and externally.
This article is aimed at potential clients interested in financial innovation, introducing J.P. Morgan's overall layout regarding crypto assets and blockchain: including official statements and project collaborations, as well as their views and progress in tokenized assets, stablecoins (JPM Coin), decentralized finance (DeFi), and blockchain settlement platforms. Readers do not need to have a professional technical background to understand the content of this article.
1. J.P. Morgan's Overall Strategic Attitude
The blockchain business of J.P. Morgan is led by the Onyx (now named Kinexys) department. Since the establishment of the blockchain research team in 2015 and the official formation of the Onyx business unit in 2020, the bank's senior management has provided continuous support. In November 2024, J.P. Morgan announced the renaming of the Onyx blockchain platform to Kinexys and renamed the original JPM Coin payment system to “Kinexys Digital Payments” to highlight its strategy to expand its application scope.
Since its establishment, the Kinexys platform has processed a cumulative transaction volume of over $1.5 trillion, with an expected average daily transaction volume of around $2 billion. In contrast, traditional banks have a daily payment traffic of about $100 trillion, indicating that the current scale of blockchain application is still far below traditional systems. J.P. Morgan has not remained in the stage of technical experiments: executives believe that blockchain technology is moving from R&D to "commercialization" and incorporating it into its main business. Onyx has formed four major business directions: Liink Network (cross-border information flow), Coin Systems (on-chain value transfer), Onyx Digital Asset Platform (tokenization of traditional assets), and "blockchain innovation" projects. In conversations with clients, 99.9% of the topics revolve around asset tokenization and on-chain payments.
Moreover, J.P. Morgan participates in multiple collaborations within the industry, such as joining the Regulated Settlement Network project initiated by SIFMA to explore multi-asset settlement solutions using commercial bank funds, central bank currency, and government bonds on the blockchain. Overall, J.P. Morgan has regarded digital assets as a key leverage point to enhance payment and settlement efficiency, actively promoting the transition of blockchain technology from experiments to large-scale applications in macro strategy.
2. Direction of Asset Tokenization
In terms of asset tokenization, J.P. Morgan is actively placing traditional financial assets on the blockchain through Kinexys/Onyx. The Onyx team has successfully tokenized U.S. Treasury bonds, mortgage-backed securities, and other assets within its internal network, allowing customers to trade these assets as on-chain collateral. For example, reports indicate that Onyx has tokenized assets such as U.S. Treasury bonds, MBS, and cash, with external clients (like Goldman Sachs and Societe Generale) each owning nodes to participate in on-chain repurchase operations. Through tokenization, these assets can achieve 24/7 real-time delivery, reducing dependence on traditional intermediary steps. As of October 2023, the Onyx digital asset platform has processed a cumulative transaction volume of approximately $900 billion, with daily transaction amounts nearing $2 billion. It is noteworthy that institutions like BlackRock have also joined such networks: in October 2023, Onyx launched the Tokenized Collateral Network (TCN), with the first real transaction being BlackRock tokenizing money market fund shares, used as collateral for a derivative contract, with Barclays as the collateral provider. This indicates that large asset management institutions are testing the tokenization of assets to improve settlement efficiency.
On the timeline, some key milestones for J.P. Morgan in the tokenization field include: 2019 launching the JPM Coin internal payment system; November 2022 participating in the Singapore MAS's Project Guardian, testing deposit token transactions in Singapore dollars and Japanese yen on the Polygon chain; October 2023 launching TCN, achieving on-chain settlement of collateral with BlackRock/Barclays; November 2024 renaming the Onyx platform to Kinexys; and 2025 collaborating with Ondo Finance and Chainlink to complete a cross-chain atomic settlement pilot of Treasury bond tokens on the Public Layer-1 chain.
The diagram below briefly lists the timeline of these milestone events (the horizontal axis in the diagram indicates the year, marking the release and pilot time points of the aforementioned major projects).
※ Note: The above is a schematic timeline chart reflecting the main progress of J.P. Morgan's tokenization strategy.
The timeline chart illustrates the timing of tokenization project milestones in the text (such as the launch of JPM Coin internally in 2019, the MAS triangle pilot in 2022, the launch of TCN in 2023, the renaming to Kinexys in 2024, cross-chain pilot in 2025, among others).
Overall, J.P. Morgan is committed to placing more financial assets on-chain through the Kinexys platform to achieve real-time, programmable settlements. According to internal reports, tokenized assets offer advantages such as instantaneous delivery and improved liquidity for trading. J.P. Morgan believes this will help transform traditional markets, such as incorporating Treasury bonds, commercial paper, etc., into the blockchain clearing system, thus significantly reducing settlement risks and enhancing transaction speed and efficiency. Industry observers believe that such technology can save significant costs in areas like repurchase agreements and securities lending.
3. JPM Coin and On-Chain Settlement Exploration
JPM Coin (under the new naming system referred to as JPMD) is the U.S. dollar deposit token issued by J.P. Morgan, used for rapid transfer of dollar funds between institutional clients on the blockchain network. In November 2025, the bank officially launched JPM Coin (JPMD) on the Base chain supported by Coinbase, allowing clients to conduct 24/7 transactions on the public chain, achieving cross-border settlement within seconds. Unlike traditional interbank transfers that take hours or even business days, JPM Coin enables asset transfers in a matter of seconds.
Furthermore, JPM Coin represents real deposits within commercial banks, fully backed 1:1 by bank deposit reserves. In contrast, general stablecoins (such as USDC) are issued by non-bank entities and are usually backed by dollar reserves or assets like government bonds, but crypto platforms may not pass on interest earnings from reserve assets to holders. J.P. Morgan executives point out that deposit tokens can provide holders with returns (i.e., interest payments), whereas most stablecoin issuers retain the earnings from the assets for themselves and do not distribute them to ordinary holders.
The following table contrasts the main differences between JPM Coin deposit tokens, mainstream stablecoins, and traditional bank transfers in terms of issuing institutions, settlement time, and revenue mechanisms:
Feature | JPM Coin Deposit Token | Stablecoin (e.g., USDC/USDT) | Traditional Bank Transfer |
Issuing Institution | Commercial Bank (J.P. Morgan) | Commercial Companies (e.g., Circle, Tether) | Banking System |
Asset Support | Bank Deposits (1:1 Dollar Reserves) | Dollar Reserves or Government Bonds, etc. (1:1) | Bank Account Balances |
Settlement Network | Blockchain (Public/Private Chains like Base) | Blockchain (Multi-Public Chain Networks) | Traditional Payment Networks (SWIFT/ACH) |
Transaction Timeliness | 24/7 Instant Settlement | 24/7 Instant Settlement | Usually Settled on Business Days |
Revenue Mechanism | Interest-Bearing (tied to bank deposit interest rates) | Typically No Dividends; Issuers Retain Earnings | Bank Accounts May Earn Interest |
Regulatory Attributes | Regulated By Banking System; Strict KYC | Variable Regulation; May Be Anonymous | Fully Regulated by Banks and Regulatory Agencies |
Target Customers | Institutional Banking Clients | Crypto Exchanges and Retail Users | All Banking Customers |
Interoperability | Exchangeable with Bank Accounts | Cross-Chain Exchangeable | Interbank Clearing |
As seen in the above table, the advantages of JPM Coin and other deposit tokens lie in their issuing party being a regulated bank, providing the same level of security as bank accounts, achieving around-the-clock settlements through blockchain, and supporting the transmission of interest earnings to holders. While stablecoins enjoy the advantage of global circulation, the fact that their issuers are non-banks highly affects regulatory compliance and monetary policy, plus holders generally do not directly earn returns from reserve assets. In contrast, JPM Coin is currently issued exclusively to institutions, providing clients with a solution that balances traditional credit with blockchain efficiency.
4. Attitude Toward Mainstream Crypto Assets and DeFi
J.P. Morgan shows an exploratory yet cautious attitude toward decentralized finance (DeFi). On one hand, the bank continuously conducts internal research and pilot collaborations involving DeFi protocols. For instance, in the “Project Guardian” initiated by the Monetary Authority of Singapore (MAS), in November 2022, the Onyx team collaborated with Singapore's DBS Bank and Japan's SBI Digital Asset Co. to trade tokenized Singapore dollar and Japanese yen deposits on the Polygon public chain. This pilot also utilized Aave Arc (regulatory-compliant version of Aave) and Uniswap tools, verifying the feasibility of institutional-level decentralized lending and trading protocols. Ty Lobban, head of Onyx, pointed out that as long as scalability and privacy solutions are in place, more traditional financial businesses will eventually migrate to public chains, indicating J.P. Morgan's positive expectations for the future role of DeFi technology on public chains. On the other hand, the J.P. Morgan team has also developed on-chain identity credential verification frameworks, allowing DeFi applications to securely access institutional users without requiring repeated KYC, offering a compliant approach for institutional-level DeFi cross-sector usage.
In May 2025, the Kinexys team also collaborated with crypto investment firm Ondo Finance and Oracle service provider Chainlink to complete a cross-chain atomic settlement pilot of Treasury bond tokens on the Ondo dedicated chain. This marked the first time Kinexys connected its permissioned chain with a public chain, utilizing Chainlink as the cross-chain communication layer, achieving synchronous settlement between traditional assets and on-chain assets. Nelli Zaltsman, head of the Kinexys settlement business, stated that this move expands clients' options for on-chain settlements, reflecting that J.P. Morgan is helping institutional clients adapt to new payment infrastructures.
Regarding mainstream crypto assets like Bitcoin and Ethereum, J.P. Morgan's internal perspective is more cautious. The past CEO Dimon criticized Bitcoin as a “scam,” but in recent years, he has shifted his stance, recognizing that clients have the right to invest in cryptocurrencies as long as the bank does not assume custody responsibilities. Currently, J.P. Morgan has not provided crypto asset custody for clients, but related research and trading activities are underway. For instance, reports indicated that the bank's market department is evaluating providing digital currency trading and derivatives services to institutional clients, and plans to allow clients to use Bitcoin or Ethereum holdings as loan collateral. Such news mainly stems from media reports and analyst speculation, with no official confirmation yet. Overall, J.P. Morgan maintains an open but cautious attitude towards crypto assets: on one hand, promoting on-chain settlement solutions, while on the other, continuously monitoring regulatory developments, striving to introduce innovative financial tools for clients under compliance conditions.
5. Speculative Information and Industry Trends (For Reference Only)
According to media reports and industry rumors, there may be more potential layouts by J.P. Morgan in the digital asset domain that have not received official confirmation. For example, Bloomberg reported that J.P. Morgan is “considering offering cryptocurrency trading services to institutional clients” and other reports speculate that the bank may allow clients to use Bitcoin, Ethereum, and other crypto assets as loan collateral. If true, these messages would further indicate the growing interest of traditional financial institutions in digital assets. However, it is important to emphasize that such information is currently mere industry speculation and does not represent J.P. Morgan's official stance. Overall, J.P. Morgan is gradually opening up its acceptance of digital assets, but all key decisions will follow regulatory approvals and market feedback.
References: This article cites official statements from J.P. Morgan, financial media reports, and industry research, including introductions to the Onyx/Kinexys platform, tokenization projects, JPM Coin, and DeFi pilots (some of which are analytical or speculative content as indicated in the text).
“JPMorgan's Blockchain Arm Kinexys Tests Tokenized Carbon Credits With S&P Global” — CoinDesk Report
“Fidelity International Tokenizes Money Market Fund on JPMorgan's Blockchain” — CoinDesk Report
“Mastercard and JPMorgan Link Up to Bring Cross-Border Payments on the Blockchain” — CoinDesk Report
“JPMorgan Chase Launches Tokenized Money-Market Fund” — Barron's Report
“JPMorgan is Jumping Deeper into Crypto with a New Tokenized Money Fund” — Business Insider Report
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