SS #64 - JPM Coin Integrates Natively With Canton Network

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Good morning!

In today’s episode, we’re tracking a major move from one of the largest banks in the U.S. J.P. Morgan is integrating its JPM Coin (JPMD) natively onto the Canton Network, marking a shift beyond the bank's internal ledgers. This move enables real-time, synchronized settlement of tokenized assets within a privacy-focused, institutional ecosystem, utilizing Canton’s public but permissioned blockchain.

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In Today's Edition:

• Headline: JPM Coin Integrates Natively With Canton Network

• Quick Bites: Circle’s USDC Outpaces Growth of Tether’s USDT for Second Year Running

• Yield of the Week: 12.96% APY on Unitas

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HEADLINE

JPM Coin Integrates Natively With Canton Network

State of play: J.P. Morgan is integrating its JPM Coin (JPMD) natively onto the Canton Network to enable real-time, synchronized settlement of tokenized assets within a privacy-enabled institutional ecosystem.

• JPM Coin will move beyond J.P. Morgan's internal ledgers to live natively on the Canton Network, a public but permissioned blockchain.

• The move allows for "Atomic Settlement," where digital cash (JPMD) and tokenized assets (like U.S. Treasuries) swap simultaneously 24/7.

• The integration will trigger in phases throughout 2026, focusing first on core issuance and redemption frameworks before expanding to other Kinexys products.

What’s Next: Expect a "liquidity fly-wheel" effect as more institutions join Canton to access JPM Coin for instant settlement, potentially leading to the integration of other major bank-issued deposit tokens (like those from Citi or SocGen) to maintain competitive parity.

Why it Matters: This represents the "Holy Grail" of institutional DeFi: the marriage of regulated commercial bank money with a privacy-preserving public ledger. It bridges the gap between siloed private blockchains and the interoperable future of global finance, reducing settlement risk and freeing up billions in trapped capital.

Our Take: This is a sophisticated move that shifts the narrative from "experimental pilots" to "critical infrastructure." By leveraging the Canton Network, J.P. Morgan is effectively setting the standard for how deposit tokens should interact with broader market infrastructures like the DTCC.

QUICK BITES

• Kontigo reimburses over 1,000 users after hack.

• Wyoming issues first state-backed stablecoin on Solana.

• Tether rolls out satoshi-style Scudo unit for its gold-backed XAUT token.

• Circle's USDC outpaces growth of Tether's USDT for second year running.

• Former Brazil central bank official unveils real-pegged stablecoin with yield sharing.

• World Liberty Financial seeks US bank charter to bring USD1 stablecoin fully onshore.

• Sei warns USDC.n token holders to swap for 'native' stablecoin ahead of planned upgrade.

• Barclays invests in stablecoin settlement firm as tokenized infrastructure advances.

• Tether-backed Rumble launches crypto wallet, letting fans tip creators in bitcoin and USDT.

YIELD OF THE WEEK

Unitas sUSDu: 12.96% APY

• Unitas utilizes a delta-neutral arbitrage engine based on JLP to generate yield while maintaining its dollar peg.

• Stakers can stake USDu and receive sUSDu, which captures protocol revenue from JLP fees, funding rate premiums, and transaction costs.

• The system has historically produced an annual percentage rate between 8% and 15% in stable market environments.

Gauntlet USD Alpha gtUSDa: 8.18%

• Gauntlet USD Alpha optimizes stablecoin returns by rotating capital through diverse DeFi sources, including lending protocols and delta-neutral perpetual strategies.

• The vault applies liquidity and volatility discounts to its performance metrics and enforces a 40% cap on non-blue-chip stablecoin exposure to mitigate depegging risks.

• The current portfolio remains heavily concentrated in primary Gauntlet vaults, with less than 1% allocated to the PT srUSDe position maturing on January 15, 2026.

Contango PT-cUSD-29JAN2026/USDC on Morpho: 8.93%-35.86% APY

• Contango enables users to open leveraged PT-cUSD-29JAN2026/USDC positions on Morpho by looping Cap stablecoins, including Principal Tokens (PT).

• The strategy allows for a maximum leverage of 9.27x, with the position structured to expire on January 29, 2026, to coincide with the PT's maturity date.

• Users utilizing the Contango platform for this automated looping strategy are subject to a service fee for the position.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.