Executives with America’s biggest bank met with the Securities and Exchange Commission’s crypto task force to discuss digital asset regulation and potential ramifications of capital markets moving on chain.
The JPMorgan Chase executives discussed with the SEC the “potential impact of existing capital markets activity migrating to public blockchain” — including which areas of the existing model might change and how firms could assess the risks and benefits of those changes, according to an SEC note shared on Tuesday.
The two groups also discussed JPMorgan’s existing “business footprint” in the crypto space, including its current digital platform that handles repurchase agreements — a type of short – term borrowing in financial markets that falls under its “digital financing” and “digital debt services” offerings.
JPMorgan also assessed where it could carve out a “competitive angle” — to stay ahead of the race as financial institutions look to the blockchain for faster, cheaper transactions while also unlocking new revenue streams through tokenized assets.
Scott Lucas, Justin Cohen and Aaron Iovine were the three JPMorgan executives who spoke with the SEC’s crypto group.
JPMorgan’s meeting with the SEC comes as the firm announced a token deposit pilot program on Tuesday, with the bank launching a deposit token, JP MD, on Coinbase’s blockchain Base.
Coinbase’s institutional clients can use JP MD for transactions once the pilot is completed, which is expected to span over several months.
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