JPMD price

Written by: The Economist Compiled by: Centreless One thing is clear: the idea that cryptocurrencies have not yet produced any noteworthy innovations is a thing of the past. In the eyes of conservatives on Wall Street, the "use cases" of cryptocurrencies are often discussed in a mocking tone. Veterans have already seen all this. Digital assets come and go, often with endless sights, exciting investors who are passionate about memecoins and NFTs. In addition to being used as a tool for speculation and financial crime, their use in other aspects has also been repeatedly found to be flawed and inadequate. However, the latest wave of craze is different. On July 18, President Donald Trump signed the GENIUS Act, providing stablecoins, crypto tokens backed by traditional assets, typically the U.S. dollar, with the regulatory certainty that industry insiders have long craved. The industry is booming; Wall Street people are now scrambling to get involved. "Tokenization" is also on the rise: on-chain asset trading volumes are growing rapidly, including stocks, money market funds, and even private equity and debt. As with any revolution, revolutionaries rejoiced, while conservatives were worried. Vlad Tenev, CEO of digital asset broker Robinhood, said the new technology could "lay the foundation for cryptocurrencies to become the backbone of the global financial system." ECB President Christine Lagarde has a slightly different view. She worries that the emergence of stablecoins is tantamount to "currency privatization". Both sides are aware of the scale of the change at hand. Currently, the mainstream market may face more disruptive changes than earlier crypto speculation. Bitcoin and other cryptocurrencies promise to be digital gold, while tokens are just wrappers, or carriers that represent other assets. It may not sound spectacular, but some of the most transformative innovations in modern finance have really changed the way assets are packaged, split, and restructured – exchange-traded funds (ETFs), Eurodollars, and securitized debt are prime use cases. Currently, the value of stablecoins in circulation stands at $263 billion, an increase of about 60% from a year ago. Standard Chartered expects the market value to reach $2 trillion in three years. Last month, JPMorgan Chase, the largest bank in the United States, announced plans to launch a stablecoin-class product called JPMorgan Deposit Token (JPMD), despite the company's CEO Jamie Dimon who has long been skeptical of cryptocurrencies. The market value of tokenized assets is only $25 billion, but it has more than doubled in the past year. On June 30, Robinhood launched over 200 new tokens for European investors, allowing them to trade U.S. stocks and ETFs outside of regular trading hours. Stablecoins make transactions cheap and fast and convenient because ownership is instantly registered on a digital ledger, eliminating the need for intermediaries operating traditional payment channels. This is particularly valuable for cross-border transactions, which are currently costly and slow. Although stablecoins currently account for less than 1% of global financial transactions, the GENIUS Act will give it a boost. The bill confirms that stablecoins are not securities and requires them to be fully backed by secure, liquid assets. Retail giants, including Amazon and Walmart, are reportedly considering launching their own stablecoins. For consumers, these stablecoins may resemble gift cards, offering balances to spend at retailers and potentially at a lower price. This will kill companies like Mastercard and Visa, which have a profit margin of about 2% on sales in the US. A tokenized asset is a digital copy of another asset, whether it's a fund, company stock, or a basket of goods. Like stablecoins, they can make financial transactions faster and easier, especially involving illiquid assets. Some products are just gimmicks. Why tokenize stocks? This may allow for 24-hour trading, as the exchanges where the stock is listed do not need to operate, but the advantages of this are questionable. Moreover, for many retail investors, the marginal transaction cost is already low or even zero. Efforts to tokenize However, many products are not so fancy. Take money market funds, for example, which invest in Treasury bills. The tokenized version can double as a payment method. These tokens, like stablecoins, are backed by secure assets and can be seamlessly exchanged on the blockchain. They are also an investment that outperforms bank rates. The average interest rate on savings accounts in the United States is less than 0.6%; Many money market funds offer yields of up to 4%. BlackRock's largest tokenized money market fund is currently worth more than $2 billion. "I anticipate that one day, tokenized foundations will be as familiar to investors as ETFs," the company's CEO, Larry Fink, wrote in a recent letter to investors. This will have a disruptive impact on existing financial institutions. Banks may be trying to dip their toes into new digital packaging spaces, but they are doing so in part because they realize that tokens pose a threat. The combination of stablecoins and tokenized money market funds may ultimately make bank deposits less attractive. The American Bankers Association notes that if a bank loses about 10% of its $19 trillion in retail deposits, the cheapest way to finance, its average financing cost will rise from 2.03% to 2.27%. While total deposits, including business accounts, will not decrease, bank profit margins will be squeezed. These new assets could also have disruptive implications for the broader financial system. For example, holders of Robinhood's new stock tokens do not actually own the underlying shares. Technically, they own a derivative that tracks the value of an asset, including any dividends paid by the company, rather than the stock itself. As a result, they do not have access to the voting rights typically conferred by stock ownership. If the token issuer goes bankrupt, holders will be in trouble and will need to compete with other creditors of the failing company for ownership of the underlying assets. A similar situation has been encountered by Linqto, a fintech startup that filed for bankruptcy earlier this month. The company has issued shares of private companies through special purpose vehicles. Buyers are now unclear whether they own the assets they think they own. This is one of the biggest opportunities for tokenization, but it also creates the greatest difficulties for regulators. Pairing illiquid private assets with easily tradable tokens opens up a closed market for millions of retail investors with trillions of dollars to allocate. They can buy shares in the most exciting private companies that are currently out of reach. This raises questions. Agencies like the U.S. Securities and Exchange Commission (SEC) have far more influence over public companies than private companies, which is why the former is suitable for retail investors. Tokens representing private shares turn what was once private equity into an asset that can be easily traded like an ETF. However, the issuer of the ETF promises to provide intraday liquidity by trading the underlying asset, which the token's provider does not. On a large enough scale, the token would actually turn a private company into a public company without any of the disclosure requirements that would normally be required. Even pro-crypto regulators want to draw a line. U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce has been dubbed the "crypto mom" for her friendly approach to digital currencies. In a statement on July 9, she emphasized that the token should not be used to circumvent securities laws. "Tokenized securities are still securities," she wrote. Therefore, regardless of whether the securities are wrapped in new cryptocurrencies, the company issuing the securities must comply with the rules of disclosure. While this makes sense in theory, the large number of new assets with new structures means that regulators will be in an endless catch-up state in practice. Therefore, there is a paradox. If stablecoins are really useful, they will also be truly disruptive. The more attractive tokenized assets are to brokers, clients, investors, merchants, and other financial companies, the more they can transform finance, a change that is both welcome and worrying. Regardless of the balance between the two, one thing is clear: the idea that cryptocurrencies have not yet produced any noteworthy innovations is a thing of the past.

Source: The Economist Compiled by: Liam In the eyes of conservatives on Wall Street, the "use case" of cryptocurrencies is often discussed in a mocking tone. Veterans have already seen all this. Digital assets come and go, often with endless sights, exciting investors who are passionate about memecoins and NFTs. In addition to being used as a tool for speculation and financial crime, their use in other aspects has also been repeatedly found to be flawed and inadequate. However, the latest wave of craze is different. On July 18, President Donald Trump signed the GENIUS Act, providing stablecoins, crypto tokens backed by traditional assets, typically the U.S. dollar, with the regulatory certainty that industry insiders have long craved. The industry is booming; Wall Street people are now scrambling to get involved. "Tokenization" is also on the rise: on-chain asset trading volumes are growing rapidly, including stocks, money market funds, and even private equity and debt. As with any revolution, revolutionaries rejoiced, while conservatives were worried. Vlad Tenev, CEO of digital asset broker Robinhood, said the new technology could "lay the foundation for cryptocurrencies to become the backbone of the global financial system." ECB President Christine Lagarde has a slightly different view. She worries that the emergence of stablecoins is tantamount to "currency privatization". Both sides are aware of the scale of the change at hand. Currently, the mainstream market may face more disruptive changes than earlier crypto speculation. Bitcoin and other cryptocurrencies promise to be digital gold, while tokens are just wrappers, or carriers that represent other assets. It may not sound spectacular, but some of the most transformative innovations in modern finance have really changed the way assets are packaged, split, and restructured – exchange-traded funds (ETFs), Eurodollars, and securitized debt are prime use cases. Currently, the value of stablecoins in circulation stands at $263 billion, an increase of about 60% from a year ago. Standard Chartered expects the market value to reach $2 trillion in three years. Last month, JPMorgan Chase, the largest bank in the United States, announced plans to launch a stablecoin-class product called JPMorgan Deposit Token (JPMD), despite the company's CEO Jamie Dimon who has long been skeptical of cryptocurrencies. The market value of tokenized assets is only $25 billion, but it has more than doubled in the past year. On June 30, Robinhood launched over 200 new tokens for European investors, allowing them to trade U.S. stocks and ETFs outside of regular trading hours. Stablecoins make transactions cheap and fast and convenient because ownership is instantly registered on a digital ledger, eliminating the need for intermediaries operating traditional payment channels. This is particularly valuable for cross-border transactions, which are currently costly and slow. Although stablecoins currently account for less than 1% of global financial transactions, the GENIUS Act will give it a boost. The bill confirms that stablecoins are not securities and requires them to be fully backed by secure, liquid assets. Retail giants, including Amazon and Walmart, are reportedly considering launching their own stablecoins. For consumers, these stablecoins may resemble gift cards, offering balances to spend at retailers and potentially at a lower price. This will kill companies like Mastercard and Visa, which have a profit margin of about 2% on sales in the US. A tokenized asset is a digital copy of another asset, whether it's a fund, company stock, or a basket of goods. Like stablecoins, they can make financial transactions faster and easier, especially involving illiquid assets. Some products are just gimmicks. Why tokenize stocks? This may allow for 24-hour trading, as the exchanges where the stock is listed do not need to operate, but the advantages of this are questionable. Moreover, for many retail investors, the marginal transaction cost is already low or even zero. Efforts to tokenize However, many products are not so fancy. Take money market funds, for example, which invest in Treasury bills. The tokenized version can double as a payment method. These tokens, like stablecoins, are backed by secure assets and can be seamlessly exchanged on the blockchain. They are also an investment that outperforms bank rates. The average interest rate on savings accounts in the United States is less than 0.6%; Many money market funds offer yields of up to 4%. BlackRock's largest tokenized money market fund is currently worth more than $2 billion. "I anticipate that one day, tokenized foundations will be as familiar to investors as ETFs," the company's CEO, Larry Fink, wrote in a recent letter to investors. This will have a disruptive impact on existing financial institutions. Banks may be trying to dip their toes into new digital packaging spaces, but they are doing so in part because they realize that tokens pose a threat. The combination of stablecoins and tokenized money market funds may ultimately make bank deposits less attractive. The American Bankers Association notes that if a bank loses about 10% of its $19 trillion in retail deposits, the cheapest way to finance, its average financing cost will rise from 2.03% to 2.27%. While total deposits, including business accounts, will not decrease, bank profit margins will be squeezed. These new assets could also have disruptive implications for the broader financial system. For example, holders of Robinhood's new stock tokens do not actually own the underlying shares. Technically, they own a derivative that tracks the value of an asset, including any dividends paid by the company, rather than the stock itself. As a result, they do not have access to the voting rights typically conferred by stock ownership. If the token issuer goes bankrupt, holders will be in trouble and will need to compete with other creditors of the failing company for ownership of the underlying assets. A similar situation has been encountered by Linqto, a fintech startup that filed for bankruptcy earlier this month. The company has issued shares of private companies through special purpose vehicles. Buyers are now unclear whether they own the assets they think they own. This is one of the biggest opportunities for tokenization, but it also creates the greatest difficulties for regulators. Pairing illiquid private assets with easily tradable tokens opens up a closed market for millions of retail investors with trillions of dollars to allocate. They can buy shares in the most exciting private companies that are currently out of reach. This raises questions. Agencies like the U.S. Securities and Exchange Commission (SEC) have far more influence over public companies than private companies, which is why the former is suitable for retail investors. Tokens representing private shares turn what was once private equity into an asset that can be easily traded like an ETF. However, the issuer of the ETF promises to provide intraday liquidity by trading the underlying asset, which the token's provider does not. On a large enough scale, the token would actually turn a private company into a public company without any of the disclosure requirements that would normally be required. Even pro-crypto regulators want to draw a line. U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce has been dubbed the "crypto mom" for her friendly approach to digital currencies. In a statement on July 9, she emphasized that the token should not be used to circumvent securities laws. "Tokenized securities are still securities," she wrote. Therefore, regardless of whether the securities are wrapped in new cryptocurrencies, the company issuing the securities must comply with the rules of disclosure. While this makes sense in theory, the large number of new assets with new structures means that regulators will be in an endless catch-up state in practice. Therefore, there is a paradox. If stablecoins are really useful, they will also be truly disruptive. The more attractive tokenized assets are to brokers, clients, investors, merchants, and other financial companies, the more they can transform finance, a change that is both welcome and worrying. Regardless of the balance between the two, one thing is clear: the idea that cryptocurrencies have not yet produced any innovations worth paying attention to is long a thing of the past.

Original title: The Battle for On-Chain Finance: Who Will Design the New Order? Original author: Tiger Research Original compilation: AididiaoJP, Foresight News Executive summary · JPMorgan Chase began issuing deposit tokens on the public chain, superimposing blockchain technology on the existing financial order · Circle applied for a trust banking license in an attempt to build a new financial order based on technology · The two types of institutions are besieging traditional finance from different directions, forming a "two-way convergence" trend · The ambiguity of the value proposition may weaken the competitive advantage of each other, and it is necessary to identify the core strengths and find a balance The new competitive landscape of on-chain financial infrastructure Blockchain technology is reshaping the basic architecture of the world's financial infrastructure. According to the latest report by the Bank for International Settlements (BIS), as of the second quarter of 2025, the scale of global on-chain financial assets has exceeded $4.8 trillion, with an annual growth rate of more than 65%. In this wave of change, traditional financial institutions and crypto-native enterprises have shown very different development paths: JPMorgan Chase is represented by a traditional financial institution Adopt a gradual reform strategy of "Blockchain+" to embed distributed ledger technology into the existing financial system. Its blockchain arm, Onyx, has served more than 280 institutional clients and processes $600 billion in annual transaction volume. The newly launched JPM Coin surpassed $12 billion in average daily settlements. Crypto-native businesses represent Circle A fully blockchain-based financial network has been built through the USDC stablecoin. At present, USDC has a circulation of $54 billion, supports 16 mainstream public chains, and has an average daily transaction volume of more than 3 million. Compared to the fintech revolution of the 2010s, the current competition presents three significant differences: 1. The focus of competition has shifted from user experience to infrastructure reconstruction 2. The technical depth sinks from the application layer to the protocol layer 3. Participants shift from complementary relationships to direct competition JPMorgan Chase: Technological innovation within the framework of the traditional financial system J.P. Morgan has filed a trademark application for its deposit token "JPMD". In June 2025, JPMorgan Chase's blockchain arm, Kinexys, began a trial run of the deposit token JPMD on the public chain Base. Previously, JPMorgan Chase mainly applied blockchain technology through private chains, but this time it directly issued assets and supported circulation on the open network, marking the beginning of traditional financial institutions to directly operate financial services on public chains. JPMD combines the features of a digital asset with the functionality of a traditional deposit. When a customer deposits USD, the bank records the deposit on the balance sheet and at the same time issues an equivalent amount of JPMD on the public chain. The token is freely circulating while retaining legal claims on bank deposits, and holders can exchange it 1:1 for US dollars and may enjoy deposit insurance and interest income. While the profits of existing stablecoins are concentrated in the issuer, JPMD differentiates itself by giving users substantial financial rights. These features provide asset managers and investors with very attractive practical value, and can even ignore some legal risks. For example, on-chain assets such as BlackRock's BUIDL fund can be redeemed 24 hours a day if JPMD is used as a redemption payment tool. Compared with existing stablecoins, which need to be exchanged for fiat currencies separately, JPMD supports instant cash conversion, while providing deposit protection and interest income opportunities, which has significant potential in the on-chain asset management ecosystem. JPMorgan Chase & Co. launched the deposit token in response to the new funding flow and income structure formed by stablecoins. Tether has annual revenues of about $13 billion, and Circle also generates significant returns by managing safe assets such as Treasuries, which are different from traditional deposit-loan spreads, but have a similar mechanism for generating income based on customer funds as some banking functions. JPMD also has limitations: it is designed to strictly follow the existing financial regulatory framework, making it difficult to achieve full decentralization and openness of the blockchain, and is currently only available to institutional clients. However, JPMD represents a pragmatic strategy for traditional financial institutions to enter public chain financial services while maintaining the existing stability and compliance requirements, and is regarded as a representative case of the connection between traditional finance and on-chain ecological expansion. Circle: Blockchain-native financial refactoring Circle has established a key position in on-chain finance through the stablecoin USDC. USDC is pegged 1:1 to the U.S. dollar, with reserves in cash and short-term U.S. bonds, making it a practical alternative for corporate payment settlement and cross-border remittances with its technical advantages such as low rates and instant settlement. USDC supports 24-hour real-time transfers, eliminating the need for complex processes on the SWIFT network, helping businesses break through the limitations of traditional financial infrastructure. However, Circle's existing business structure faced multiple constraints: BNY Mellon managed USDC reserves, and BlackRock managed assets, an architecture that delegated core functions to an external agency. Circle earns interest income, but has limited effective control over its assets, and its current profit model is highly dependent on a high-interest rate environment. Circle needed more independent infrastructure and operational authority, which was necessary for long-term sustainability and revenue diversification. Source: Circle In June 2025, Circle applied to the Office of the Comptroller of the Currency (OCC) for a national trust bank license, a strategic decision that went beyond the need for mere compliance. The industry interprets it as Circle's transformation from a stablecoin issuance to an institutionalized financial entity. The trust bank status will enable Circle to directly manage the custody and operation of reserves, which will not only strengthen the internal control of the financial infrastructure, but also create conditions for expanding the scope of business, and Circle will lay the foundation for institutional digital asset custody services. As a crypto-native enterprise, Circle adjusted its strategy to build a sustainable operating system within the institutional framework. This transformation will require acceptance of the rules and roles of the existing financial system, at the cost of reduced flexibility and increased regulatory burdens. Specific authority in the future will depend on policy changes and regulatory interpretations, but this attempt has become an important milestone in measuring the extent to which on-chain financial structures are established within the framework of existing institutions. Who will dominate on-chain finance? From traditional financial institutions such as JPMorgan Chase to crypto-native enterprises such as Circle, participants from different backgrounds are actively laying out the on-chain financial ecosystem. This is reminiscent of the competitive landscape of the fintech industry in the past: technology companies entered the financial industry through internal implementation of core financial functions such as payments and remittances, while financial institutions expanded users and improved operational efficiency through digital transformation. The point is that this competition breaks down the boundaries between the two sides. A similar phenomenon is emerging in the current on-chain financial sector: Circle directly performs core functions such as reserve management by applying for a trust bank license, while JPMorgan Chase issues deposit tokens on the public chain and expands its on-chain asset management business. Starting from different starting points, the two sides gradually absorb each other's strategies and fields, and each seeks a new balance. This trend brings new opportunities as well as risks. If traditional financial institutions forcibly imitate the flexibility of technology companies, they may conflict with the existing risk control system. When Deutsche Bank pursued a "digital-first" strategy, it crashed into legacy systems and lost billions of dollars. On the other hand, crypto-native companies may lose the flexibility to support their competitiveness if they overextend the system and accept it. The success or failure of on-chain financial competition ultimately depends on a clear understanding of its own foundation and advantages. Companies must achieve an organic integration between technology and institutions based on their "unfair advantage", and this balance will determine who wins in the end. Link to original article