JPMorgan Chase executives have met with the Securities and Exchange Commission’s Crypto Task Force to discuss the evolving landscape of capital markets as they transition to blockchain technology.
According to an SEC note released Tuesday, the meeting focused on the “potential impact of existing capital markets activity migrating to public blockchain,” as well as the risks and benefits associated with this shift.
The discussion included which financial instruments could move onchain and how firms might navigate regulatory and operational changes.
JPMorgan also shared details about its current involvement in digital assets, including its digital platform for repurchase agreements, which falls under its “Digital Financing” and “Digital Debt Services” offerings.
The bank is assessing where it could establish a “competitive angle” as blockchain technology offers faster and less costly transactions, along with new revenue opportunities from tokenised assets.
Three JPMorgan executives participated in the meeting: Scott Lucas, head of markets for digital assets; Justin Cohen, global head of equity derivatives development; and Aaron Iovine, global head of digital asset regulatory policy.
The meeting comes as JPMorgan launches a pilot program for its deposit token, JPMD, on Coinbase’s Base blockchain.
Once the pilot phase is complete, Coinbase’s institutional clients will have access to JPMD for transactions, a process expected to take several months.
JPMorgan recently filed a trademark application for JPMD, which covers services such as digital asset trading, transfers, and payment processing.
There has been speculation that JPMorgan might issue a stablecoin, but Naveen Mallela, an executive at JPMorgan’s blockchain division Kinexys.
"Token deposits are a superior alternative to stablecoins for institutions,” Mallela said, citing scalability due to fractional reserve backing.
Deposit tokens, unlike stablecoins, represent dollar deposits held in customer bank accounts and operate within the traditional banking framework.