Digital Asset, known as the creator of the Canton Network, and Kinexys by JPMorgan have announced plans to…

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Digital Asset, known as the creator of the Canton Network, and Kinexys by JPMorgan have announced plans to bring USD JPM Coin (JPMD) natively to the Canton Network. This strategic integration aims to extend the utility of the bank’s deposit token onto a public, institutional-grade blockchain infrastructure. JPM Coin is a bank‑issued, USD‑denominated deposit token designed specifically for institutional clients, representing a digital claim on JPMorgan US dollar deposits through distributed ledger technology.

The project is led by Yuval Rooz, the co-founder and CEO of Digital Asset, and Naveen Mallela, the global co-head of Kinexys by JPMorgan. Their collaboration is focused on realizing a vision where regulated digital cash can move at the speed of modern financial markets. By integrating JPM Coin natively on the Canton Network, the parties intend to provide the security associated with bank-issued deposits alongside the innovation of 24/7, near real-time blockchain transactions. This move is designed to meet the increasing demand for faster and more secure money movement on public blockchain rails. Bringing JPM Coin to the Canton Network allows the asset to move seamlessly across that ecosystem as regulated, interoperable digital money, rather than being restricted to an internal bank ledger.

Context

The Canton Network, where JPM Coin will be natively integrated, is a public, permissionless layer‑one blockchain purpose‑built to serve institutional finance. Its primary goal is to provide synchronized settlement across multiple asset classes on a shared, interoperable infrastructure. This design allows for more efficient financial operations by enabling different institutions to interact within a unified blockchain environment that balances openness with the privacy and compliance standards required by the financial sector.

Supporting the governance and development of this ecosystem is Canton Coin, the native token of the Canton Network. Canton Coin is used for decentralized governance and facilitates application development within the network. The presence of a native token like Canton Coin, combined with the integration of a regulated deposit token like JPM Coin, creates a comprehensive environment for institutional transactions. JPM Coin’s role as a USD-denominated deposit token provides the necessary liquidity and cash settlement component for the various asset classes handled on the network. Because the Canton Network is built specifically for institutional use, it provides a specialized framework where digital claims on bank deposits can be used to settle a wide variety of financial instruments. This infrastructure is intended to streamline the lifecycle of financial assets by allowing for synchronized settlement, ensuring that both the asset and the payment move together in a secure and transparent manner.

Impact

The integration of JPM Coin into the Canton Network will be conducted through a phased approach that is scheduled to continue through 2026. This timeline allows Digital Asset and Kinexys to carefully develop and implement the necessary technical and business frameworks required for native blockchain operations. The initial phase of the integration focuses specifically on the frameworks needed to issue, transfer, and redeem JPMD near‑instantly on the Canton Network. This is a critical step in ensuring that the digital deposit token can function effectively within a public layer-one environment.

By establishing these frameworks, the partnership aims to facilitate near-instantaneous movement of regulated digital cash between institutional participants. This capability is expected to significantly reduce the friction and delays typically associated with traditional money movement and settlement processes. The ability to issue and redeem JPMD directly on the Canton Network ensures that institutional clients can manage their liquidity with greater speed and certainty. Furthermore, the phased integration through 2026 ensures that the necessary compliance and security protocols are fully integrated into the transaction lifecycle. This development moves the industry forward by allowing for the use of bank-issued deposits in a blockchain environment that supports 24/7 transactions. As these technical and business structures are finalized, they will provide a robust foundation for more efficient and interoperable financial markets, where digital cash moves with the same speed and innovation as the underlying blockchain technology.

Outlook

As the integration progresses toward its expected 2026 completion, Digital Asset and Kinexys by JPMorgan plan to explore further expansions of their collaboration. Beyond the initial native deployment of JPM Coin, the partners intend to look into integrating other products from the Kinexys Digital Payments suite. This includes the potential for integrating JPMorgan’s blockchain-based deposit accounts into the Canton Network. Such an expansion would provide institutional participants with a wider array of on-chain cash management options, further enhancing the utility of the network for complex financial operations.

The long-term outlook for this partnership is focused on supporting advanced institutional decentralized finance (DeFi) workflows. By providing regulated, interoperable digital money that can move seamlessly across the Canton ecosystem, the collaboration aims to create a standard for how bank-issued assets interact with public blockchain infrastructure. The successful deployment and ongoing refinement of JPMD on the network will serve as a model for future digital asset integrations. Between now and 2026, the focus will remain on building out the infrastructure necessary to support a variety of institutional use cases, ensuring that the Canton Network can handle the demands of synchronized settlement across diverse asset classes. This evolution suggests a future where regulated digital cash is a core component of institutional blockchain platforms, enabling more sophisticated and efficient financial services globally.