JPMorgan expands blockchain footprint: building an ambitious "interoperable digital funds" platform

Traditional financial giants are no longer satisfied with small-scale experiments on private chains. In early 2026, JPMorgan announced an ambitious plan: to expand its JPM Coin deposit token to multiple blockchain networks, including the privacy-focused Canton Network.

The bank aims to create a regulated, interoperable digital currency system for near-instant institutional payments. This shift signifies that traditional finance is embracing public blockchain infrastructure at an unprecedented speed and depth.

Strategic Shift

From 2025 to 2026, the digitalization of the global banking industry has moved rapidly from proof of concept to large-scale commercial application. JPMorgan, as a leader, has taken particularly clear steps. In June 2025, JPMorgan launched the JPM Coin deposit token for institutional clients on Coinbase’s Ethereum Layer 2 network Base. This move broke the long-standing limitation of its digital asset business being confined to private chains, laying the foundation for funds to circulate on public blockchains.

By January 2026, JPMorgan’s blockchain footprint expanded again. According to the latest announcement, the bank plans to extend JPM Coin to Canton Network, a privacy-focused public blockchain designed for institutional finance. The official statement clearly articulated the strategic goal of this layout: “To lay the foundation for regulated, interoperable digital funds.”

Synergy Between JPM Coin and Canton Network

JPM Coin differs fundamentally from traditional stablecoins. It is a “deposit token,” representing on-chain claims to USD deposits held at JPMorgan, issued directly by the bank and constrained by existing regulatory frameworks. This design inherently offers compliance and interest-bearing features, making it particularly attractive to institutional clients holding large sums. Canton Network, on the other hand, is a unique blockchain infrastructure that balances between fully transparent and fully closed systems.

Canton Network adopts a “public permissioned” architecture combined with Daml smart contracts, allowing fine-grained privacy controls at the transaction layer. This design enables financial institutions to meet regulatory audit requirements without disclosing sensitive commercial information. The network’s scale is impressive, with over $6 trillion in real-world assets on-chain on Canton, processing $4 trillion in transactions monthly. These assets include over $10 billion daily in US Treasury repurchase agreements. Choosing Canton Network is not only about technological adaptation but also about entering an ecosystem that already includes core financial institutions such as Goldman Sachs, BNP Paribas, BNY Mellon, and Hong Kong Exchanges and Clearing.

By integrating JPM Coin natively into this network, JPMorgan’s institutional clients will be able to receive, transfer, and redeem JPMD almost instantly within a secure, synchronized ecosystem.

Building Interoperable Financial Infrastructure

JPMorgan’s layout extends far beyond a single blockchain network. A spokesperson stated that deploying JPM Coin across multiple blockchain networks is a key step toward achieving “regulated, interoperable digital currencies.” This “interoperability” manifests on three levels: cross-chain, cross-institution, and cross-asset.

On the cross-chain level, JPMorgan plans to support more public blockchain networks and its private Kinexys digital asset infrastructure, ultimately integrating its cash solutions into both private and public systems.

On the cross-institution level, JPMorgan has partnered with DBS Bank in Singapore to develop a tokenized deposit framework, enabling institutional clients to transfer funds across different blockchains.

On the cross-asset level, Canton Network’s “atomic composability” allows for synchronized settlement of transactions across different asset classes, creating conditions for seamless interaction between JPM Coin and other tokenized assets such as bonds and securities.

Market Impact and Challenges of Institutional Digital Currencies

With JPM Coin launching on public chains, JPMorgan’s private Kinexys network (formerly JPM Coin Network) currently processes over $3 billion daily. While this figure is just the tip of the iceberg compared to its global payment system’s daily clearance volume of nearly $10 trillion, it signifies that regulated institutional funds are entering the public chain world in a compliant manner.

Beyond JPMorgan, the global banking industry is accelerating its deployment. Citigroup has expanded its tokenized deposit service Citi Token Services to include euro transactions. Banks in Asia are adopting different strategies, viewing stablecoins like USDT and USDC as key tools to counteract deposit outflows and revenue losses from transactions. Regulatory environments are conducive to such innovations. The US Senate’s passage of the “GENIUS Act” sets full reserve and audit requirements for stablecoins, indirectly benefiting bank-issued tokens like JPM Coin.

Additionally, Canton Network is designed to meet the regulatory standards of the SEC, EU, and Asian regulators simultaneously, which is crucial for global expansion.

Outlook for the Cryptocurrency Market

JPMorgan’s initiative has established a regulated, low-friction channel for traditional funds to enter the crypto market. For platforms like Gate, this means a potential new institutional user base and a broader range of assets. The trend of integrating digital assets with traditional finance is increasingly evident. Already, $12 billion in regulated assets have been issued natively on Canton Network, including bonds, money market funds, and mortgages. This integration is not only technological but also touches on core financial services—payments, settlement, and asset management.

Naveen Mallela, Global Head of Blockchain at JPMorgan’s Kinexys, once said, “Deposit tokens are more scalable than stablecoins.” This highlights the structural advantages of bank-issued tokens over traditional stablecoins.

When JPM Coin on Canton Network achieves on-chain atomic swaps with US Treasuries, money market funds, and other traditional assets, the tens of trillions of dollars in daily institutional liquidity handled by JPMorgan will find new pathways. Its digital financial landscape is already taking shape—on one side, private Kinexys networks handle cross-border payments for companies like Siemens; on the other, JPM Coin circulates on public blockchains, connecting to a broader world of tokenized assets.