Tokenised deposits go public as JPMorgan issues JPMD on Canton Network
- Future of Finance
- Jan 6
- 2 min read
Updated: 3 days ago
J.P. Morgan is pioneering the use of tokenised deposits to make payments between banks
J.P. Morgan blockchain unit is issuing its tokenised deposit on Canton Network, the second public blockchain it is using after Base
The native issue of the JPMD tokenised deposit on to Canton Network will take place in phases through 2026
Tokenised deposits, hitherto trapped within banks, are starting to become available for inter-bank payments through native issuance on public networks.
Kinexys, the blockchain unit of J.P. Morgan, will natively issue its tokenised deposit JPMCoin (JPMD) on to the Canton Network, the pubic but privacy-enabled blockchain network developed by blockchain technology vendor Digital Asset.
The move means JPMD, which enables institutional clients of J.P. Morgan to make payments using a digital representation of deposits they maintain at the bank, will e able to make payments to users of public networks as well as other J.P. Morgan clients.
Until recently, JPMD was available to settle transactions between existing clients of J.P. Morgan only, and could not be transferred outside the bank. However, Kinexys is now planning to issue JPMD in native form on to two public blockchain networks: Base (owned by Coinbase) and the Canton Network.
"This collaboration brings to life the vision of regulated digital cash that can move at the speed of markets," says Yuval Rooz, Co-Founder and CEO of Digital Asset. "By bringing JPM Coin natively to Canton, we're establishing the foundation for modernising the existing financial rails to facilitate the more efficient flow of capital, bridging traditional finance and digital infrastructure in a way that preserves privacy, compliance, and trust."
Naveen Mallela, Global Co-Head of Kinexys by J.P. Morgan, added that "this collaboration moves the industry forward in transacting on public blockchains. JPM Coin delivers the security of bank-issued deposits and settlement, combined with the speed and innovation of 24/7, near real-time blockchain transactions. In bringing JPM Coin on to Canton, we can further increase efficiency and unlock liquidity."
Under the terms of the collaboration, Digital Asset and Kinexys by J.P. Morgan will take a phased approach to the integration throughout 2026. The initial focus will be on establishing the technical and business frameworks necessary to support the issuance, transfer, and redemption of JPM Coin directly on Canton.
The collaboration will also explore additional integrations of other Kinexys digital payments products, including J.P. Morgan's blockchain deposit accounts, to expand the offering and capabilities available to Canton Network users.
