A major transformation is underway in the world of payments, and it is not driven by speculation or flashy new tokens. Instead, the partnership between Base, JPMorgan, and Shopify is quietly reshaping how money moves across the globe. Base, Coinbase’s Ethereum Layer-2 network, has become the backbone for both institutional and everyday commerce, supporting payment flows that are faster, cheaper, and more reliable than ever before.
JPMorgan’s launch of its JPMD deposit token on Base marks a significant milestone. Unlike most crypto projects that chase hype with new tokens, JPMorgan has made it clear there are no plans for a native token. The focus is on building real payment infrastructure that serves businesses and institutions, not on fueling the next speculative frenzy. JPMD is a digital representation of deposits at JPMorgan, operating under the bank’s traditional fractional reserve model. This means that, unlike stablecoins such as USDC which are fully backed and regularly audited, JPMD does not offer on-chain proof of reserves. It does, however, allow JPMorgan to scale liquidity efficiently and offer interest to institutional clients, all while facilitating near-instant, round-the-clock cross-border payments.
Shopify’s integration with Base has brought these innovations directly to merchants. Now, Shopify sellers can accept USDC for payments, enjoying instant settlement and ultra-low fees. This is a dramatic improvement over traditional payment processors, which are slower and much more expensive. The $92 million in annual revenue generated from these commerce flows is not coming from trading or speculation but from real economic activity—actual goods and services being bought and sold. Every transaction processed through Base and Shopify contributes to this growing revenue, which primarily benefits Coinbase shareholders due to Base’s decision to forgo a native token.
This approach stands in stark contrast to projects like Kraken’s Ink, which launched a token pre-IPO to incentivize its ecosystem. While tokens can drive engagement, they also bring regulatory scrutiny and market volatility. Base’s strategy is to avoid these pitfalls by focusing on building trusted, scalable infrastructure. This has made Base a magnet for institutional adoption, with other major players like BlackRock and Circle also building on its rails.
The real innovation here is not about replacing traditional banking with crypto, but about making financial systems work better. JPMorgan and Shopify’s embrace of Base signals a new level of trust in public blockchain networks. These institutions are leveraging blockchain to improve what already exists, not to upend it entirely. The result is a 24/7 global payment system that works across borders and is poised to become the backbone of digital commerce.
Yet, challenges remain. Base faces pressure from its community to introduce a token, while JPMorgan must address calls for greater transparency around JPMD’s reserves. Shopify, too, must navigate regulatory uncertainties as it scales blockchain adoption. Despite these hurdles, the convergence of institutional finance and blockchain technology is redefining how money moves in a borderless, digital world. The biggest winners in this new phase of crypto adoption may not be traders or speculators, but the institutions quietly building the future of finance, on-chain and in plain sight.
