JPMorgan Chase has launched a USD deposit token called JPM Coin on Coinbase’s Base network, connecting its massive payment infrastructure directly to the blockchain. This move could significantly increase Ethereum’s on-chain activity and transaction volume. Key insights include: 1) The token represents actual USD deposits held at J.P. Morgan, allowing for near-instantaneous transfers via Base; 2) JPM Coin is fully backed by bank reserves (not crypto), enabling it to be used as a legal means of transferring funds on Ethereum; 3) Even a small portion of JPMorgan’s daily payments volume could significantly impact Ethereum transaction rates, potentially tripling the network’s daily throughput. The introduction of JPM Coin on Base signifies a major step in bridging traditional finance and cryptocurrency.