JPMorgan has migrated its JPM Coin to Coinbase’s Base network, marking the bank’s most public embrace of decentralized finance to date.
Key Takeaways
- JPMorgan moved its tokenized deposit, JPM Coin, from its private Kinexys blockchain to Base, a public Ethereum layer-2 network built by Coinbase.
- The shift was driven by institutional client demand to settle trades, post collateral, and make payments on public blockchains.
- JPM Coin remains permissioned and controlled by JPMorgan, distinguishing it from stablecoins while providing similar utility.
- This strategic move signals traditional finance’s increasing interest in DeFi and public blockchain rails.
What Happened?
JPMorgan has taken a major leap into the decentralized finance (DeFi) space by migrating its JPM Coin from a private blockchain to Base, Coinbase’s public Ethereum-based network. The change is part of a broader effort to give institutional clients more flexible, onchain payment and collateral options using bank-backed digital dollars.
BREAKING: JPMorgan has moved its tokenized dollar deposits to Base blockchain. pic.twitter.com/yWcywmePZc
— Coinvo (@Coinvo) December 18, 2025
A Shift from Private to Public
For six years, JPM Coin operated exclusively on Kinexys, JPMorgan’s permissioned blockchain infrastructure formerly known as Onyx. The system allowed only whitelisted clients to settle transactions internally, offering speed and security within a controlled environment. However, as blockchain-based financial activity increased in the public sphere, clients began requesting more accessible options.
According to Basak Toprak, Product Head of Deposit Tokens at JPMorgan’s Kinexys Digital Payments, the tipping point was the lack of alternatives. She said:
Base, Coinbase’s Ethereum layer-2 solution, emerged as the logical choice for migration. It combines low fees with the security of Ethereum, and already supports a large institutional user base. Mastercard and Coinbase even tested JPM Coin on Base before its official launch on the network on November 12, confirming the system’s stability and readiness.
A New Role for JPM Coin
On Base, JPM Coin can now be used for collateral management and margin payments, particularly in crypto-related transactions. Asset managers and broker-dealers who maintain trading relationships with Coinbase are among the early adopters. These firms can now post JPM Coin as collateral instead of using traditional offchain transfers or stablecoins.
Toprak noted that the use of cash as collateral is not new in finance, saying, “Cash is used as collateral today in traditional finance, so it can be used as a collateral in the onchain world as well.”
Unlike USDC or USDT, JPM Coin remains a permissioned token, available only to JPMorgan-approved clients. This model allows the bank to maintain compliance and risk controls while still operating on a public network.
Challenging the Stablecoin Status Quo
The move may pit tokenized bank deposits like JPM Coin against traditional stablecoins, which currently dominate onchain finance. Brian Foster, Coinbase’s Global Head of Wholesale, described tokenized deposits as a “cousin of stablecoins,” highlighting their similar use cases but different operational models.
Foster added that the real challenge for banks now is scaling the reach of these products. “How do I make this useful outside of my four walls?” he asked, suggesting that widespread adoption depends on integration across platforms.
Staying in Control on a Public Chain
Deploying JPM Coin on a public blockchain raises obvious questions around risk management. Toprak reassured that JPMorgan remains in full control of the token, including the smart contracts and the ability to move the token between addresses. The system went through extensive internal governance checks before going live.
She also emphasized the maturity of public blockchains, saying that the infrastructure has proven to be stable and reliable over time. JPMorgan’s calculated risk is now opening the door for broader adoption by large institutions that have so far been cautious about entering the DeFi world.
CoinLaw’s Takeaway
In my experience covering financial technology, this is one of the most significant signs that traditional banking is starting to embrace the ethos of decentralized finance. What’s striking is not just that JPMorgan moved JPM Coin to a public blockchain, but that they did it because clients demanded it. I found it especially telling that the bank kept full control while still offering the flexibility of Base. This kind of hybrid model could be the blueprint for how other banks enter DeFi without giving up compliance. It’s not just a tech story. It’s a business shift, and I think we’ll see more banks follow.
