jpmorgan

In one of the largest financial repositioning moves of 2024-2025, JPMorgan Chase has withdrawn approximately $350 billion from its Federal Reserve account and redirected those funds into U.S. Treasury securities. The strategic shift, revealed in the bank's recent SEC filings, signals how America's largest bank is preparing for a sustained period of lower interest rates.
The Numbers Behind the Move
JPMorgan's cash balance at the Federal Reserve plummeted from $409 billion at the end of 2023 to about $63 billion by the third quarter of this year, representing a dramatic 85% reduction in its Fed deposits. During the same period, the bank increased its Treasury holdings from $231 billion to roughly $450 billion, nearly doubling its government debt portfolio.
This massive reallocation comes as the Federal Reserve has begun cutting interest rates after a prolonged period of aggressive tightening. The central bank raised rates from near zero to above 5% between 2022 and early 2023 in an effort to combat inflation. In late 2024, the Fed reversed course and began lowering rates, with the most recent cut bringing the benchmark rate to its lowest level in three years.
Strategic Timing and Market Positioning
Bill Moreland, founder of BankRegData, characterized the move as JPMorgan "migrating money at the Fed to Treasuries" because "rates are going down and they're front-running". By purchasing Treasury securities now rather than later, JPMorgan has effectively locked in higher yields before additional rate cuts further erode returns on cash holdings.
The strategy reflects lessons learned from previous rate cycles. During the low interest rate environment of 2020-2021, JPMorgan deliberately avoided making large investments in long-term bonds. This conservative approach paid off when the Fed aggressively raised rates in 2022, allowing JPMorgan to sidestep the substantial paper losses that impacted competitors like Bank of America, which had accumulated significant bond positions during the ultra-low rate period.
Throughout the recent tightening cycle, JPMorgan earned attractive returns on cash kept at the Fed while paying out less to customers, thanks to stable deposit bases that remained in place despite rising rates. Now, as rates decline, holding large cash balances at the Fed has become less advantageous, prompting the shift to Treasuries.
Broader Banking Sector Implications
The scale of JPMorgan's withdrawals has had a measurable impact on the overall banking system. The bank's actions were so substantial that they offset aggregate cash movements from more than 4,000 other U.S. banks combined. Total bank deposits held at the Federal Reserve fell from $1.9 trillion to $1.6 trillion since the beginning of 2024.
Banks have earned interest on Federal Reserve deposits since 2008, when the central bank implemented this mechanism to manage liquidity and control short-term interest rates. These interest payments reached $186.5 billion in 2024 as high rates persisted before the recent cuts began.
Political Scrutiny and Regulatory Considerations
The substantial interest payments banks receive on their Federal Reserve deposits have attracted political attention. In October, the Senate rejected a bill that would have stopped the Fed from paying interest on reserve balances. Senator Rand Paul, who championed the legislation, argued that the Federal Reserve was paying hundreds of billions of dollars to banks to keep money idle, with support from Republican senators Ted Cruz and Rick Scott.
This political pressure adds another dimension to JPMorgan's strategic decision, as the bank navigates not only market conditions but also the evolving regulatory and political landscape surrounding bank reserves and central bank operations.
JPMorgan's Financial Position
JPMorgan Chase remains the largest bank in the United States, controlling more than $4 trillion in assets. The bank has demonstrated strong financial performance, with robust profitability metrics and a market capitalization exceeding $863 billion. Analysts maintain a generally positive outlook on the stock, though the bank's premium valuation reflects high expectations for continued strong performance.
The bank has not disclosed specific details about the maturity dates of the Treasury securities it acquired or information about any interest rate swap contracts it may be using for risk management purposes. This lack of transparency regarding the duration of its Treasury holdings leaves some questions about the bank's specific yield expectations and hedging strategies.
Looking Ahead
JPMorgan's $350 billion reallocation represents a calculated bet on the direction of interest rates and the relative value of different types of safe assets. By moving aggressively into Treasuries ahead of anticipated further rate cuts, the bank aims to protect its net interest income and maintain profitability in a lower rate environment.
The move also demonstrates how the largest financial institutions can influence broader market dynamics and Federal Reserve operations. As other banks potentially follow JPMorgan's lead in repositioning their balance sheets, the aggregate impact could affect Treasury markets, Fed reserve levels, and ultimately the transmission of monetary policy itself.
For investors and market watchers, JPMorgan's strategic shift serves as a clear signal about where one of the world's most sophisticated financial institutions sees interest rates heading in the months ahead. Whether this proves to be a prescient move will depend on the Federal Reserve's future policy decisions and the trajectory of inflation and economic growth in 2025 and beyond.
#USNonFarmPayrollReport #TrumpTariffs #JPMorgan

In its latest research report, JPMorgan reiterated that it does not expect the global stablecoin market to reach a $1 trillion valuation by 2028, pushing back against some of the more aggressive growth forecasts circulating in the crypto industry. Instead, the bank projects that total stablecoin market capitalization will likely range between $500 billion and $600 billion over the next few years.
Trading Still Drives Stablecoin Demand
According to JPMorgan, the primary growth engine for stablecoins remains cryptocurrency trading, rather than real-world payment use cases. Stablecoins continue to play a crucial role as a liquidity bridge, quote currency, and settlement asset across centralized and decentralized exchanges. Their ability to move quickly and cheaply on-chain makes them ideal for trading, arbitrage, and collateral purposes.
However, JPMorgan notes that this trading-driven demand has natural limits. Even with increased crypto market activity, stablecoin supply does not need to expand indefinitely to support higher volumes.
Payments Adoption Doesn’t Necessarily Mean Higher Supply
While stablecoins are increasingly being explored and adopted for payments, remittances, and cross-border transfers, JPMorgan argues that this trend does not automatically translate into a surge in circulating supply.
The key reason lies in velocity. As stablecoins are used more efficiently in payment systems, the same unit of stablecoin can facilitate a larger number of transactions within a given period. Higher turnover reduces the need to mint additional tokens, allowing transaction volumes to grow without a proportional increase in total supply.
In other words, greater usage can be absorbed through faster circulation rather than larger issuance.
Structural Constraints on Rapid Expansion
JPMorgan also points to structural and regulatory factors that may limit explosive growth. Compliance requirements, reserve management, and evolving regulatory frameworks around stablecoin issuers could act as natural brakes on supply expansion. At the same time, traditional financial institutions and payment networks are exploring tokenized deposits and bank-issued digital money, which may compete with stablecoins rather than amplify their growth.
A More Measured Growth Trajectory
Taken together, these factors support JPMorgan’s view that the stablecoin market will continue to grow—but at a more measured and sustainable pace than the trillion-dollar narratives suggest. Under this framework, stablecoins remain a critical component of the crypto ecosystem, yet their role outside trading may evolve through efficiency gains rather than sheer supply growth.
👉 Follow for more insights on stablecoins, digital payments, and institutional crypto research.
#Stablecoins #JPMorgan #CryptoMarket

JPMorgan has pushed back on bullish industry forecasts, saying it does not expect the global stablecoin market to reach a $1 trillion valuation by 2028. In its latest research, the bank estimates total stablecoin market cap will more likely land in the $500–$600 billion range over the coming years.

Trading Still Dominates Stablecoin Demand
According to JPMorgan, stablecoins are still primarily driven by crypto trading activity, not everyday payments. They remain essential as liquidity tools, quote currencies, and settlement assets across both centralized and decentralized exchanges. Their speed, low cost, and on-chain efficiency make them ideal for trading, arbitrage, and collateral use.

That said, the bank notes this demand has natural limits. Even if crypto trading volumes grow significantly, stablecoin supply doesn’t need to expand endlessly to support it.

Payments Growth ≠ Bigger Supply
While stablecoins are gaining traction in payments, remittances, and cross-border transfers, JPMorgan argues this doesn’t automatically mean a surge in circulating supply.

The reason is velocity. As stablecoins move faster and more efficiently through payment systems, the same tokens can support more transactions. Higher turnover reduces the need for large increases in issuance.

Regulation and Competition Matter
JPMorgan also highlights regulatory and structural constraints. Compliance rules, reserve requirements, and evolving stablecoin regulations could slow rapid expansion. At the same time, tokenized deposits and bank-issued digital money may compete with stablecoins rather than fuel their growth.

Bottom Line
Stablecoins are expected to keep growing—but at a measured, sustainable pace, not at the trillion-dollar scale some predict. Their role may expand through efficiency and usage, rather than sheer increases in supply.

Follow for more insights on stablecoins, digital payments, and institutional crypto research. 🚀
#Stablecoins #JPMorgan #CryptoMarket #BinanceSquare

ICE, the parent company of the NYSE, is in talks to invest in crypto payments company MoonPay, targeting a valuation of approximately $5 billion.
The Clarity Act, a crypto market structure bill, is expected to be submitted to the Senate for consideration in January.
#Bitwise has filed a registration statement with the SEC for its Bitwise SUI ETF.
#JPMorgan Chase reiterates its forecast that the stablecoin market will not reach a trillion dollars by 2028.
Forward Industries, a treasury firm, tokenizes FWDI shares through Superstate.

#CoinRank #GM

JPMorgan Chase has significantly reduced its cash reserves at the Federal Reserve, withdrawing over $350 billion and reallocating the funds into U.S. Treasury bonds. The move comes as the Fed lowers interest rates to the lowest levels in three years.
At the end of 2023, JPMorgan held $409 billion in its Fed account. By Q3 2025, that figure had dropped to just $63 billion, while its Treasury holdings surged from $231 billion to $450 billion in the same period.

A Preemptive Strategy to Lock In Yields
“It’s clear JPMorgan is moving money from the Fed into Treasuries. Rates are falling, and they’re getting ahead of it,” said Bill Moreland, founder of BankRegData.
The bank’s strategic shift helps it secure better returns while avoiding the earnings pressure of declining interest rates — a scenario that has impacted peers. Notably, JPMorgan had avoided large long-term bond positions in 2020–2021, unlike Bank of America, which suffered paper losses when the Fed began aggressively hiking rates in 2022.

Earning More From the Fed Than Paying Out to Clients
JPMorgan has long benefited from cash held at the Fed, earning more in interest than it pays to depositors. In 2024 alone, the bank earned about $15 billion in interest from the Fed, while reporting $58.5 billion in total annual profit.

Ripple Effect on the Entire Banking System
The scale of JPMorgan’s shift was so large it outweighed balance changes from over 4,000 other U.S. banks. Total Fed balances across the banking system declined from $1.9 trillion to $1.6 trillion since the beginning of 2024.
Since 2008, banks have been able to earn interest on cash held at the Fed — a tool used by the central bank to manage short-term interest rates. These payments hit a record $186.5 billion in 2024, amid persistently high rates before the recent cuts.

Political Backlash Mounts Over Fed Payments
A proposed bill to ban the Fed from paying interest on reserves was blocked in the Senate in October, but Republican criticism is intensifying. Senator Rand Paul, along with Ted Cruz and Rick Scott, argue that the Fed is paying “hundreds of billions of dollars for money to sit idle.”
Paul published a report earlier this month stating that the top 20 U.S. banks have earned $305 billion in interest from reserves since 2013. JPMorgan alone received $15 billion in 2024.

#Fed , #JPMorgan , #interestrates , #bondmarket , #worldnews

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

called Base This move is part of the bank's effort to meet growing demand from its customers who want to use bank deposits in the world of crypto The tokenized deposit is known as JPM Coin or JPMD Unlike stablecoins which are digital currencies tied to an asset JPMD represents real bank funds and can earn interest This makes it different from other digital cash options on public blockchains

The bank first started using blockchain technology in 2019 with a private version of Ethereum called Kinexys The new step to Base allows institutional customers to use JPMD for payments or to keep collateral for transactions This is useful for clients who need to pay margins or settle deals in a fast and efficient way Traditional bank accounts have timing limits and stablecoins carry different risks so using JPMD can be safer for some institutions

JPMD is only available to whitelisted clients who are onboarded to the bank’s system This keeps the process controlled and secure The bank still manages the token and has the ability to move it between addresses This way it can ensure that all transactions are safe and comply with internal rules

The use of JPMD can be compared to stablecoins in some ways It can be used for payments or as collateral on trading platforms but it is backed by real bank deposits Some experts say it is like a cousin of stablecoins since it works in a similar space but is limited to a bank network The bank wants to make sure its customers can use the product in a secure and reliable way while exploring new opportunities in digital finance

JPMorgan sees public blockchains as a place where many of its customers will operate in the future The bank has tested its systems for years and believes it can manage risks properly The smart contracts are controlled by the bank and the keys are stored securely This gives confidence to clients who may be new to crypto or prefer to work with trusted institutions
Overall JPMD on Base shows how banks
#JPMorgan #TokenizedDeposits #BlockchainBanking

#Ethereum 's taking a bit of a hit lately . It's currently trading at $2,858.72, down 2.47% . The $3,000 level is proving tough to crack, with selling pressure mounting.
Decline 🤔
$ETH Weak market sentiment and macroeconomic uncertaintyRepeated rejections near $3,150-$3,250 resistanceInstitutional investors securing profits amid regulatory concernsFlat network usage despite upgrades like Pectra @CZ

Aims to boost scalability and cut Layer-2 costs #JPMorgan launched an Ethereum money market fund, signaling confidence #USNonFarmPayrollReport #WriteToEarnUpgrade