JPMorgan races to adapt as tokenisation rises

JPMorgan CEO Jamie Dimon said the bank must move faster to compete with blockchain-based technologies as tokenisation begins reshaping the financial system.

He warned that stablecoins, smart contracts and tokenised assets are emerging as direct competitors to traditional banking across payments, trading and asset management.

“A whole new set of competitors is emerging based on blockchain, which includes stablecoins, smart contracts and other forms of tokenisation,”

Dimon said.

Dimon said JPMorgan is accelerating its blockchain strategy through its Kinexys unit and JPM Coin, aiming to match faster settlement and lower-cost infrastructure offered by tokenised systems.

The shift toward tokenisation could reduce traditional banking revenue streams by enabling near-instant settlement and direct asset transfers without intermediaries.

JPMorgan has already piloted tokenised bonds and money market funds, while JPM Coin allows institutional clients to transfer funds instantly within the bank’s network.

Dimon also warned that geopolitical tensions, high asset prices and rising global debt could sustain inflation and keep interest rates higher for longer, reinforcing the need for banks to adapt to structural changes in finance.