JPMorgan Mulls Blockchain-Based Deposit Token, Report – Finance Bitcoin News


America’s biggest bank by assets, JPMorgan Chase, is exploring a blockchain-based deposit token for cross-border payments and interbank transfers. If approved by regulators, the banking giant may create the digital asset, which would be different from its existing JPM Coin as it could be used to send money to accounts in other banks.


JPMorgan Considers Digital Token for Cross-Border Payments and Settlement


JPMorgan is in the early stages of exploring a blockchain-based digital deposit token, Bloomberg reported quoting a person with knowledge of the matter. The token could be used to speed up cross-border payments and settlement.

According to the source who chose to remain anonymous, most of the underlying infrastructure that would be necessary to run the new means of payment has been developed. However, the token will not be issued without U.S. regulatory approval.

The bank may launch it less than a year after it gets a green light and offer it to corporate clients, the report unveils. JPMorgan has already issued deposit tokens as part of the Monetary Authority of Singapore’s Project Guardian last year and highlighted their potential in a study:

“We believe deposit tokens will become a widely used form of money within the digital asset ecosystem, just as commercial bank money in the form of bank deposits makes up over 90% of circulating money today.”


Deposit tokens represent a deposit claim against a commercial bank, a digital version of deposits held by customers in their accounts. The tokens can be transferred and as their transactions are processed on a blockchain, settlement can be instantaneous and arguably cheaper. A JPMorgan spokesperson has been quoted as elaborating:

Deposit tokens bring plenty of potential benefits, but we also appreciate that regulators would want to be thoughtful and diligent … Should that appetite develop, our blockchain infrastructure would be able to support the launch of deposit tokens relatively quickly.”

JPMorgan has been at the forefront of Wall Street’s attempt to employ the technology that underpins cryptocurrencies, the report notes. The issuance of a deposit token would expand the banking behemoth’s efforts in the sphere of blockchain.

So far, JPMorgan has developed several applications utilizing blockchain, including the JPM Coin, which was announced a few years ago. It allows some of the financial institution’s corporate clients to move dollars and euros from their various accounts within the bank.


However, a deposit token would differ in that it could be easily used to send money to clients of other banks, Bloomberg’s source pointed out. It can also facilitate the settlement of trades of tokenized securities or financial instruments issued on a blockchain.

The token, users of which will be subject to know-your-customer and other checks, would most likely be denominated in U.S. dollars initially but could later become available in other fiat currencies. And it should be noted that its purpose would not be to purchase cryptocurrencies or replace fiat-pegged stablecoins.


Source : [JPMorgan Mulls Blockchain-Based Deposit Token, Report – Finance Bitcoin News]( undefined - JPMorgan explores blockchain-based deposit to• News / September 11, 2023


240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata ICO Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma


Automata ICO Limited, a Company incorporated in Ireland with its registered office at 3rd Floor Ormond Building, 31-36 Ormond Quay Upper, Dublin 7, D07 Ee37, Ireland registered in Ireland under number 690280 has applied for a Virtual Asset Service Provider registration with the Central Bank of Ireland. Whilst the application is ongoing, we are permitted to continue business as a Virtual Asset Service Provider in line with the Central Bank of Ireland's regulatory disclosure statement as required under section 106L of the CJA 2010 in relation to registered VASPS.

Automata ICO Limited, a Permanent Establishment incorporated in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.