Three senior JPMorgan executives met with the Securities and Exchange Commission’s (SEC) Crypto Task Force to explore how capital markets could transition to public blockchains and how to navigate the subsequent regulatory landscape, according to reports.
As per an SEC note the meeting focused on “the potential impact of existing capital markets activity migrating to public blockchain, identifying what market instruments may move on-chain and assess associated risks and benefits. The session also addressed JPMorgan’s existing digital operations, particularly in areas like repurchase agreements—short-term borrowing mechanisms supported by its “Digital Financing” and “Digital Debt Services” offerings.
JPMorgan explores competitive edge in tokenized finance
Executives from JPMorgan highlighted their ongoing efforts to find a “competitive angle” as blockchain adoption accelerates among financial institutions. The move comes amid growing interest in using blockchain rails for faster, cheaper transactions while unlocking new income streams through asset tokenization.
The three JPMorgan executives involved were Scott Lucas, head of markets for digital assets; Justin Cohen, global head of equity derivatives development both managing directors and Aaron Iovine, executive director and global head of digital asset regulatory policy. All three engaged with SEC officials on both innovation strategy and regulatory implications.
Token pilot launches amid regulatory talks
The meeting came as JPMorgan launched a pilot program for a blockchain-based deposit token dubbed JPMD. As Coin Headline reported earlier, Built on Coinbase’s Base network, JPMD allows institutional clients to complete transactions using tokenized dollars, with the pilot expected to run for several months. Coinbase’s institutional customers will gain access once the trial concludes.
One day prior to the announcement, JPMorgan filed a trademark application for JPMD, outlining a wide range of crypto-focused services, including digital asset trading, payments, and fund transfers.
No stablecoin—yet
Speculation quickly followed about a potential JPMorgan stablecoin launch, but Naveen Mallela, an executive with Kinexys, JPMorgan’s blockchain division, dismissed the idea. In comments to Bloomberg, Mallela said deposit tokens offer “a superior alternative to stablecoins” for institutions. He emphasized that their scalability and integration with traditional banking systems make them better suited for enterprise use than stablecoins, which operate on a fractional reserve model.
