JPMorgan Chase, the largest U.S. bank, is broadening access to its JPM Coin among institutional investors. The bank announced plans to bring its year-old cryptocurrency token to the Ethereum (CRYPTO: $ETH) network, expanding beyond its current availability on Base, a Layer-2 blockchain operated by Coinbase Global (NASDAQ: $COIN). JPMorgan cited Ethereum's higher liquidity and widespread use among institutional investors as key reasons for the move.
JPM Coin, which represents dollar deposits at the bank, will enable institutional clients to make blockchain payments and settle trades or back tokenized assets. Tokenization converts real-world and financial assets into digital forms recorded on blockchain networks like Ethereum. The bank's private blockchain network, Kinexys, already handles over $7 billion U.S. in daily payments.
JPMorgan is also part of a group of banks planning a shared network for tokenized deposits in the U.S. The bank's stock has risen 12% over the last year, trading at $337.97 U.S. per share. The exact timeline for JPM Coin's availability on Ethereum remains unclear.