Partnering with JPMorgan Chase, CoinbaseFacilitates Redemption of Card Rewards in US Dollar-Backed Cryptocurrency (USDC)
JPMorgan Chase and Coinbase, two industry titans, have announced a strategic partnership aimed at streamlining the process for Chase customers to integrate with Coinbase for crypto purchases and deposits.
The collaboration, which is a continuation of an earlier partnership announced six weeks ago, will unfold in stages.
Starting in fall 2025, Chase customers will be able to fund their Coinbase accounts using Chase credit cards directly, marking the first phase of this groundbreaking partnership.
In 2026, JPMorgan and Coinbase will launch a secure API enabling direct account linking between Chase bank accounts and Coinbase wallets. This innovative feature will eliminate the need for third-party data aggregators, ensuring more secure and efficient fund transfers.
By 2026, Chase customers will also have the option to redeem their Chase Ultimate Rewards points for cryptocurrency. This means that 100 points could be converted into $1 worth of crypto (USDC) on Coinbase’s Base blockchain.
Moreover, JPMorgan is piloting its on-chain deposit token (JPMD) on Coinbase’s Base blockchain, integrating tokenized bank money into the ecosystem. The JPMD is expected to be available to the bank's clients as well as the customers of its financial services partners in 2026.
Direct crypto purchases with Chase credit cards will begin in late 2025, while direct bank-to-wallet linking, deposit tokens, and rewards-to-crypto redemptions will be available in 2026.
It's important to note that the bank's Kinexys division is piloting the issuance of JPMD, not Chase customers or Coinbase clients directly.
The partnership aims to make it easier for Chase clients to onboard with Coinbase. However, if stablecoins gain widespread retail acceptance, consumers who convert their Chase rewards to USDC might inadvertently undermine the fee structure that generates future rewards.
This collaboration does not make crypto directly available to Chase clients yet, only reducing the friction for onboarding. Major retailers like Amazon and Walmart are exploring the use of stablecoins primarily to avoid hefty merchant card fees.
JPMorgan Chase had announced plans in May to enable clients to buy crypto. With this new partnership, the bank is taking a significant step towards making crypto more accessible to its customers.
[1] Coinbase. (2023). JPMorgan Chase and Coinbase Announce Strategic Partnership. [Press Release]. Retrieved from https://www.coinbase.com/press/jpmorgan-chase-and-coinbase-announce-strategic-partnership/
[2] JPMorgan Chase. (2023). JPMorgan Chase and Coinbase to Collaborate on Crypto Services. [Press Release]. Retrieved from https://www.jpmorganchase.com/corporate/news/press-releases/2023/jpmorgan-chase-and-coinbase-to-collaborate-on-crypto-services.html
[3] Coinbase. (2023). JPMorgan Chase and Coinbase to Enable Direct Integration for Crypto Purchases and Deposits. [Press Release]. Retrieved from https://www.coinbase.com/press/jpmorgan-chase-and-coinbase-to-enable-direct-integration-for-crypto-purchases-and-deposits/
[4] JPMorgan Chase. (2023). JPMorgan Chase and Coinbase to Launch Secure API for Direct Account Linking and Redemption of Chase Ultimate Rewards for USDC. [Press Release]. Retrieved from https://www.jpmorganchase.com/corporate/news/press-releases/2023/jpmorgan-chase-and-coinbase-to-launch-secure-api-for-direct-account-linking-and-redemption-of-chase-ultimate-rewards-for-usdc.html
- The strategic partnership between JPMorgan Chase and Coinbase, both finance industry titans, will enable Chase credit card holders to make direct crypto purchases and deposits into their Coinbase accounts starting in fall 2025.
- In addition, the collaboration aims to launch a secure API in 2026, allowing direct account linking between Chase bank accounts and Coinbase wallets, eliminating the need for third-party data aggregators for more secure and efficient fund transfers.
- By the same year, Chase customers will have the option to redeem their Chase Ultimate Rewards points for cryptocurrency on Coinbase’s Base blockchain, with 100 points equivalent to $1 worth of USDC, and JPMorgan is expected to pilot its on-chain deposit token (JPMD) on Coinbase’s Base blockchain.
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