Ethereum News: Is JPMorgan About to 3x Ethereum’s Onchain Volume?

Key insights:

• According to Ethereum news, Base fees are paid in ETH, so every on-chain JPMorgan dollar directly increases demand for Ether.
• JPMorgan’s $10 trillion/day flows can now use Base via a new deposit token (JPMD/JPM Coin).
• Massive RWA on-ramp: JPM Coin is fully backed by bank deposits, effectively bringing TradFi dollars on-chain.

Ethereum news: J.P. Morgan’s Kinexys division has quietly launched a USD deposit token on Coinbase’s Base network, linking the bank’s massive payment flows to crypto rails.

JPMorgan’s new token (JPMD, now called JPM Coin) represents dollar deposits and settles on Base in near real-time. In effect, this lets the bank’s $10 trillion-a-day payments network move on-chain via Base.

Analysts note this is one of the biggest real-world assets (RWA) on-ramps yet: JPM Coin is backed by actual bank deposits (not crypto reserves)[4], so it legally brings traditional cash into the blockchain ecosystem.

Even a tiny slice of J.P. Morgan’s flow on-chain, say 1% (about \$100 billion), would vastly exceed Ethereum L1’s daily throughput. Ethereum L1 handles roughly 1.5 million tx/day.

Since every Base transaction is paid in ETH, each dollar JPMorgan shifts on-chain immediately fuels demand for Ethereum’s native asset. This development is thus seen as a major catalyst for network activity and fee demand on Ethereum.

Ethereum News: JPMorgan Launches Deposit Token on Base

According to a report by Bloomberg, JPMorgan’s blockchain unit Kinexys has taken its dollar-deposit token live on the public blockchain Base. In June, Kinexys unveiled a pilot of the JPM Deposit Token (JPMD) on Base.

Now the token has moved into full production under the “JPM Coin” brand and is available to JPMorgan’s institutional clients for 24/7 settlement.

The deposit token represents actual USD deposits held at J.P. Morgan. The token represents dollar deposits held at JPMorgan, enabling near-instantaneous transfers using Coinbase’s public blockchain, Base.

Unlike a cryptocurrency stablecoin, JPM Coin is fully backed by bank reserves. JPMorgan is the first bank to issue a US-dollar token on a public chain.

In the bank’s words, JPM Coin “delivers the security of bank-backed deposits and settlement, combined with the speed and innovation of 24/7, near real-time blockchain transactions.”

Because it’s backed by regulated deposits, minting JPM Coins requires only a client’s bank account – there is no off-ramp to a crypto exchange needed to issue the token.

Early trials involved major players like Mastercard, Coinbase, and crypto market maker B2C2[1], and the token has even been approved as collateral on Coinbase’s platform.

A Closer Look into the Development

The launch underscores JPMorgan’s strategy to bridge traditional finance and crypto. The bank’s Kinexys network processes about \$3 billion in transactions per day – a small slice of JPMorgan’s roughly \$10 trillion-a-day payments volume.

By contrast, Base is an open ETH Layer 2 that already saw millions of transactions daily in 2024. Putting JPMorgan’s dollars onto Base means tapping enormous “real-world asset” (RWA) volume.

This step effectively turns legacy bank deposits into digital tokens, bringing a huge new source of capital into Ethereum ecosystem.

Experts view JPM Coin as a massive real-world asset on-ramp. By digitizing bank money, JPMorgan is merging traditional payment rails with blockchain rails.

The deposit token works like an interest-bearing stablecoin backed by reserves, but with the convenience of blockchain money.

Meanwhile, it marks “one of the biggest steps yet in bridging TradFi money to crypto rails,” according to industry analysts.

For example, JPMorgan customers can deposit USD at the bank and immediately get tokenized JPMD on Base, which they can send globally 24/7 without exchanging for crypto first.

In effect, dollars start behaving like native crypto tokens.

Impact on Ethereum Network and Fees

The implications for Ethereum are dramatic and worth creating headlines in the news. Even a small fraction of JPMorgan’s flows would multiply ETH traffic.

For context, Ethereum’s base layer currently sees on the order of 1.5 million transactions per day. By contrast, JPMorgan’s global payment system moves about \$10 trillion daily.

Meanwhile, if just 1% of that volume (about \$100 billion) was transacted on Base; it would far exceed current Ethereum L1 usage.

Roughly speaking, it could triple the network’s daily transaction count. In other words, the new token could turn Ethereum’s transaction volume into a more institutional-scale figure.

The volume would instantly raise demand for Ethereum block space and fees. Importantly, Base is an Ethereum-compatible chain where all transaction fees are paid in ETH.

That means every on-chain JPMD transaction effectively converts bank dollars into fees paid in Ether. More transactions equal more ETH burned or paid to validators.

Over time, network fee revenue could climb significantly. In short, JPMorgan’s on-chain flows create a powerful tailwind for Ethereum economics.