Jamie Dimon, CEO of global banking giant JPMorgan (JPM), said the bank plans to get more involved in stablecoins, even as he questioned their practical utility compared to traditional payments.
“We’re going to be involved in both JPMorgan Depositcoin and stablecoins to understand it, to be good at it,” Dimon said during the bank’s Tuesday earnings call. “I think they’re real, but I don’t know why you’d want a stablecoin as opposed to just payment.”
His comments came as stablecoins, a subset of cryptocurrencies with prices tied to predominantly to fiat money like the U.S. dollar, are having a breakthrough moment in the broader financial system. They are increasingly being used as a cheaper, faster alternative for cross-border payments, especially in emerging countries. Looming U.S. regulation provides another tailwind for the sector, with the Senate already having passed the GENIUS Act and the House aiming to vote on the proposal this week.
Read more: House Gears Up for Crypto Market Structure Vote on Wednesday, Stablecoins Thursday
Dimon has been a long-time skeptic of cryptocurrencies. Despite that, the bank has been an early leader in tokenization with its private blockchain network Kinexys, formerly known as Onyx. The bank now settles $2 billion in transactions daily using JPM Coin. It also piloted last month a deposit token, JPMD, on the Base network, a blockchain built by Coinbase that runs on Ethereum.
Dimon also suggested that financial technology firms, fintechs in short, are using stablecoins and blockchain tools to edge into traditional banking. “These guys are very smart,” he said during the call. “They’re trying to figure out a way to create bank accounts and get into payment systems and rewards programs.”
“We have to be cognizant of that,” he said. “Way to be cognizant is to be involved.”
For example, crypto-powered banking startup Dakota offers cross-border U.S. dollar payments using stablecoins in the backend and has raised $12.5 million to expand its services to over 100 countries, CoinDesk reported.