• JPMorgan CEO Jamie Dimon said the bank will get more involved in stablecoins, including its own JPMorgan Depositcoin.
  • JPMorgan recently piloted a tokenised deposit (JPMD) on Coinbase’s Ethereum-based Base network.

In a notable shift from his long-standing skepticism, JPMorgan CEO Jamie Dimon said the global banking giant is planning to increase its involvement in stablecoins.

Speaking during the bank’s second-quarter earnings call, Dimon admitted that stablecoins are “real,” even as he questioned their necessity over conventional payment systems.

“We’re going to be involved in both JPMorgan Depositcoin and stablecoins to understand it, to be good at it,” Dimon said. “I think they’re real, but I don’t know why you’d want a stablecoin as opposed to just payment.”

Stablecoins Enter the Financial Mainstream

Stablecoins, cryptocurrencies pegged to fiat currencies like the U.S. dollar, are gaining recognition as efficient tools for cross-border transactions.

They offer a cost-effective and faster alternative to traditional banking processes, especially in emerging economies.

The sector is also seeing tailwinds from regulatory developments, with the U.S. Senate passing the GENIUS Act and the House expected to vote on the bill this week.

Despite Dimon’s earlier doubts about crypto, JPMorgan has already been active in blockchain innovation.

The bank runs Kinexys, its private permissioned blockchain previously known as Onyx, and settles around $2 billion in daily transactions using JPM Coin. Last month, it also tested a deposit token, JPMD, on Base, a layer-2 Ethereum network developed by Coinbase.

Dimon noted that fintech companies are leveraging stablecoins and blockchain infrastructure to tap into traditional banking.

“These guys are very smart,” he said. “They’re trying to figure out a way to create bank accounts and get into payment systems and rewards programs.”

One example is Dakota, a crypto-driven banking startup offering USD cross-border payments powered by stablecoins. The firm has raised $12.5 million to expand operations to over 100 countries.

Edited by Annette George