Since its inception, over US$2 trillion has been processed on the Kinexys by JP Morgan platform. Kinexys is JP Morgan’s rebranded (formerly Onyx) digital payments and blockchain platform, designed to modernise global financial infrastructure through tokenisation, cross-border payments, and real-time data exchange. On average, Kinexys processes US$3 billion a day in transaction volume.
Kinexys comprises Kinexys Digial Payments, a deposit ledger; Kinexys Digital Assets, a mult-asset tokenisation platform; and Kinexys Link, a bank-led scalable, permissioned payments information network.
Transactions of US$2 trillion by JPM Coin is not small compared to the US$15 trillion to US$20 trillion of stablecoins moved a year. On the other hand, JP Morgan, the banking group, moves anything between US$10 trillion to US$15 trillion a day.
JPM Coin set to quadruple in volume and value
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Naveen Mallela, global co-head of Kinexys by JP Morgan (Kinexys), says: “You will see the volumes growing in an order of magnitude as we go forward. We also have regulatory tailwinds as regulators worldwide are more embracing of the technology.”
His goal is to quadruple and quintuple the growth of JPM Coin.
“Aspirationally, we want to grow at four to five times, whether it is revenue metrics, volume metrics or value metrics, and we think we are very well placed to get there. We’ve made the JPM Coin available on public blockchains. We think that the JPM Coin is credible and compelling. It is a superior alternative to stable coins for institutional usage as they are interest bearing,” Mallela elaborates.
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Regulatory tailwinds from the GENIUS Act could also provide a boost to digital assets such as the JPM Coin although the GENIUS Act’s focus is on stablecoins which are very different from the JPM Coin. The GENIUS Act creates licensing and regulatory requirements for domestic payment stablecoin issuers and standards for participation in the US payment stablecoin market by foreign stablecoin issuers. It also provides requirements for the custody and safekeeping of certain payment stablecoin-related assets.
Just like a bank deposit
Mallela explains a that a JPM Coin account is just like a bank deposit. ““Like all deposits, they tend to be fractionally backed. This is no different. It is backed by 10 cents because traditionally, that is the average leverage ratio.”
The leverage ratio is regulatory requirement as stipulated by Basel III. The formula is: capital measure/ exposure measure. The capital measure is based on tier 1 capital and the exposure measure includes on-balance sheet and other exposures. The minimum leverage ratio for global banks is 3%.
By contrast, one stablecoin has to have one-to-one USD backing in a bankruptcy, remote structure under the GENIUS Act.
GENIUS Act stablecoins are designed to be interoperable across platforms and regulated like money, with clear consumer protections. They are lkely to be backed by cash or cash equivalents in segregated accounts, and intended for broad public use including retail payments and remittances.
Stablecoins must comply with specific reserve, audit, and redemption requirements outlined in the GENIUS Act. They are redeemable 1:1 for U.S. dollars. Since stablecoins are effectively digital money, they can be used across platforms and wallets. The aim of the GENIUS Act is to standarise and legitimise stablecoins as part of the US financial system.
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The JPM Coin, on the other hand, is backed by bank deposits and functions within JPMorgan’s internal systems. A deposit account with JPM Coin acts like a bank deposit account. JPM Coins are primarily for JP Morgan’s institutional clients and partners to support interbank settlements and corporate treasury operations, not retail transactions. Redemption is tied to banking relationships and accounts, not the public stable coin infrastructure. And the JPM Coin is not intended to compete with public stablecoins or serve as a universal digital dollar.
To tie it back to the bank’s asset-liabilities management, one JPM Coin is also US$1. “The reserves are a relatively small proportion, with the rest of JPM Coin backed by the bank’s assets, including the long duration assets, just like a deposit. The bank’s depositors get the certainty of deposits. Deposits have deposit insurance and are treated like cash and cash equivalents by our customers,” Mallela explains.
“The key distinction is the JPM Coin is essentially a bank deposit onchain, which is the unique piece. Stablecoins have a completely different structure, but could we really see stablecoins get to a scale that they can be used for wholesale payments? When you have to lock up those reserves (to back the stablecoins), it may start to clog up the gears of the financial system,” Mallela continues.
The JPM Coin can be used to buy anything, for instance a tokenised building or a painting.
When asked how the JPM Coin is different from its previous version, Mallela explains that the first JPM coin was within a closed loop private permission chain. “Since then, we've branded the closed loop permission blockchain into Kinexys Digital Payment. We also now have a token on the public blockchain, ie on Coinbase’s Base,” Mallela says.
When it was launched in June the JPM Coin was only available to five clients. It was also capped in terms of how much one party could hold. “Now JPM Coin is generally available. Clients can sign up to it,” Mallela says.
“The prudential supervision is going to be exactly the same as deposits and indistinguishable from a regular deposit. It's regulated like a deposit. The underlying ledger is a public ledger, but it doesn't change the nature or the characteristics of a deposit. The technology changes, the characteristic doesn't change,” Mallela adds.
From a tax standpoint for both the depositors and the bank, the JPM Coin will be treated as a deposit. In sum, it is for institutional usage, for clients who want 24/7 programmable money, but with all of the certainty of a JP Morgan bank account.
JPM Coin can be used by non-JPM clients
A key differentiation of the JPM Coin from regular deposits, is it can be used by non-JPM clients, such as clients of JPM clients. On Nov 10, DBS Bank and Kinexys announced the development of an interoperability framework to enable tokenised value transfers between both banks’ on-chain ecosystems.
“A bank’s client, for example, can hold a JPM Coin even though they are not our client but the bank’s client. The bank is also our client, so it's the client of our clients. We are the largest dollar payer bank in the world. We have 4,000 banks on our books,” Mallela says.
Since the total market cap of stablecoins is US$300 billion, Mallela’s target is for the JPM Coin’s market capitalisation to be US$10 billion in three to five years. ”We don't think that that's unrealistic,” he says.
On Oct 14, JPMorganChase reported that JP Morgan Payments generated US$4.9 billion in revenue in its 3QFY2026, up 13% y-o-y. Excluding the net impact of equity investments, payments revenue rose 6% driven by higher deposit balances.
The group’s net income in 3QFY2026 was US$14.4 billion, above consensus estimates. JP Morgan’s share price closed at US$299.42 on Nov 18, up 24.9% this year.
