JPMorgan CEO says tokenization is reshaping finance, banks must act faster

JPMorgan CEO Jamie Dimon said that tokenization is reshaping parts of the financial system and that banks need to move faster in response. In his annual letter to shareholders, Dimon warned that blockchain-based technologies like tokenization, stablecoins, and smart contracts are emerging as direct competitors to the banking industry, CoinDesk reported. He noted these technologies could fundamentally change core functions such as payments, trading, and asset management. Dimon added that JPMorgan must accelerate its own blockchain initiatives, including its Kinexys tokenization platform and JPM Coin, stating that tokenization systems could threaten banks' fee income and even their deposits.