JPMorgan Examines Banking Operational Risks After Blockchain Migration

JPMorgan has moved its deposit token, JPMD, to Coinbase’s Base blockchain, reflecting how major banks are shifting parts of their payments infrastructure from closed mainframes to public blockchains. The move means banks must reassess the operational risks posed by onchain transactions, smart contracts and external infrastructure, alongside their existing credit and liquidity management responsibilities.

At a 2026 payments forum, Umer Farooq, global co-head of J.P. Morgan Payments, discussed the JPMD migration and said the primary changes involved operational risk rather than credit or liquidity risk. He also compared Base’s onchain architecture with traditional mainframe-based deposit systems. The reports disclosed no exact date, migration value or transaction volume.