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JP Morgan Explores Deposit Tokens: A Comprehensive Report by Ledger Insights

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JP Morgan Explores Blockchain Deposit Token for Cross-Border Payments


A Bloomberg report yesterday stated that JP Morgan is exploring a blockchain-based deposit token for cross-border payments. It says the bank would not create the token without approval from U.S. regulators. We explore what type of deposit token this might be, given we believe the bank already has the go ahead.

JP Morgan’s Plans

JP Morgan plans to use the product for corporate client transactions within a year of receiving the go ahead. The report is based on a source, but a JP Morgan spokesperson added, “Should that appetite develop, our blockchain infrastructure would be able to support the launch of deposit tokens relatively quickly.”

Benefits of Deposit Tokens for Cross-Border Payments

  • Speed of cross-border settlement
  • 24/7 nature
  • No separation of message and money
  • Transaction can happen irrespective of opening hours

What Type of Deposit Token?

A key question is what type of deposit token is the bank talking about, because it is not entirely clear in the Bloomberg report. We suspect this may be a public blockchain deposit token.

JP Morgan’s Existing Deposit Tokens

JP Morgan already has JPM Coin, which it refers to as a blockchain-based deposit account. This purely supports payments between JP Morgan bank accounts but is used by large corporates for intra company transfers. The most recent statistic is that it processed $300 billion by June this year, when it launched a Euro blockchain deposit account.

JP Morgan’s Approval for Blockchain Deposit Tokens

According to our information, in May JP Morgan received a non objection letter from the Office of the Comptroller of the Currency (OCC) to use the Partior network. Partior is an interbank deposit token network for cross border payments which aims to target corporate payments. Confirmed participant banks are DBS Bank and Standard Chartered. We believe Deutsche Bank and Japan’s SMBC are also joining the Partior network, although there has not been a formal announcement. In May, sources close to Deutsche Bank said no decision had been made.

Potential Reasons for Highlighting JP Morgan’s Plans

There are two potential reasons for highlighting JP Morgan’s plans now. Earlier this week, another deposit token initiative, the Regulated Liability Network (RLN), revealed it is running extending trials in the UK following a U.S. trial a few months back. Both trials attracted quite a bit of attention. Citi initiated the RLN.

A less likely motivation is the stablecoin legislation progressing in the United States. While deposit tokens are quite different from stablecoins, the current version of the legislation mentions deposit tokens indirectly.


JP Morgan’s exploration of a blockchain-based deposit token for cross-border payments shows their commitment to innovation in the financial industry. With the potential benefits of speed and 24/7 availability, deposit tokens could revolutionize cross-border settlements. However, regulatory approval is still required, and the type of deposit token JP Morgan is considering remains unclear.

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