JPMorgan Chase has officially launched JPM Coin (JPMD), a digital deposit token for institutional clients, signaling a major step forward as banks deepen their involvement in digital assets.

The digital coin represents dollar deposits held at JPMorgan, enabling near-instantaneous transfers using Coinbase’s public blockchain, Base, Bloomberg report said, quoting Naveen Mallela, co-head of JPMorgan’s blockchain group Kinexys.

This rollout allows payments to settle in seconds, anytime, around the clock, rather than taking days and being restricted to business hours, and follows a months-long trial involving major players like Mastercard, Coinbase, and B2C2.

JPMorgan plans to eventually deploy the token on other blockchains and give clients' clients access to JPM Coin and expand the token to multiple currencies pending regulatory approval.

The coin will even be accepted as collateral on Coinbase, highlighting its growing role in crypto markets.

Deposit tokens are not stablecoins; rather, they are digital claims on funds already in client bank accounts, designed to facilitate smoother blockchain transactions. Unlike traditional stablecoins, which are backed by reserves and do not typically generate yield for holders, deposit tokens can be interest-bearing, offering an attractive option for institutional investors.

The launch builds on JPMorgan’s growing blockchain ambitions and is part of a broader wave of global financial firms, including Citigroup, Banco Santander, Deutsche Bank, and PayPal, exploring digital tokens to speed up and reduce payment costs.

The development follows the U.S.' Genius Act, which governs stablecoins, or dollar-pegged digital tokens.

Other banks, such as Bank of New York Mellon and HSBC, are also developing similar deposit token solutions.