JPMorgan (JPM) CEO Jamie Dimon said the bank must accelerate its efforts to keep pace with blockchain-based competitors as tokenization transforms parts of the financial system, according to its annual letter to shareholders.
“A whole new set of competitors is emerging, based on blockchain, including stablecoins, smart contracts and other forms of tokenization,” Dimon wrote, presenting the technology as a direct challenge to traditional banking models.
He added that these technologies, alongside fintech companies, “could change the fundamental nature of how all of this is done,” referring to core banking functions such as payments, trading and asset management.
Dimon’s response is not to reject change, but to accelerate JPMorgan’s own efforts.  We need to deploy our own blockchain technology and continue to focus on what our customers want,  he said.
The comments come as tokenization – the transformation of assets such as money market funds, bonds or real estate into blockchain-based tokens – has become a central focus for both crypto companies and large financial institutions.
Major players, including BlackRock, Franklin Templeton and Goldman Sachs, have launched or tested tokenized funds over the past year. Cryptocurrency native companies are also moving into this space, offering blockchain-based versions of traditional financial products that operate continuously and settle transactions almost instantly.
JPMorgan has spent years developing blockchain infrastructure through its Onyx unit, now renamed Kinexys, with products designed to replicate core banking functions on new rails. Its centerpiece, JPM Coin, is a bank-issued stablecoin that allows institutional clients to transfer funds instantly, replacing slower internal transfers. The bank has also engaged in the tokenization of traditional assets, running pilot projects that transform instruments such as government bonds and money market funds into blockchain-based tokens that can be transferred and used as collateral in near real-time.
Dimon said the transition to blockchain-based versions of traditional products is intensifying pressure on banks. Faster settlement can reduce fees for payments and exchanges, while tokenized systems can allow assets to flow directly between users. Stablecoins, which act like digital dollars, also represent a potential alternative to bank deposits.
Dimon has not endorsed crypto assets such as bitcoin in the letter, instead focusing on the underlying infrastructure and its impact on competition. He noted that clients are increasingly seeking advice in areas such as “digital assets,” signaling growing institutional interest even as the bank remains cautious.
Beyond technology, Dimon took a cautious tone regarding the economy. He warned that geopolitical tensions, including conflicts in the Middle East, could cause “large and persistent oil and commodity price shocks” and lead to “more stubborn inflation and, ultimately, lower interest rates.” “higher than what the markets currently anticipate.”
He also highlighted high asset prices and global debt levels as risks, suggesting markets may be underestimating potential volatility.
Yet the letter makes clear that emerging financial infrastructure – not just macroeconomic conditions – is shaping JPMorgan’s strategy. As tokenization gains popularity, Dimon said the bank views this change as structural, not cyclical.
