The bank has already built most of the infrastructure needed for the project but will not create the actual token unless it gets the go-ahead from US regulators, says Bloomberg, citing a source.

JPMorgan has been using a digital token, called JPM Coin, for several years, enabling corporate clients to move funds in dollars and euros from their different accounts within the bank.

However, the new offering could be used to send money to clients of other banks, says Bloomberg. It could also be used to settle trades of tokenised securities.

In a statement to Bloomberg, a bank spokesperson says: “Deposit tokens bring plenty of potential benefits, but we also appreciate that regulators would want to be thoughtful and diligent before any new product gets developed and used.

“Should that appetite develop, our blockchain infrastructure would be able to support the launch of deposit tokens relatively quickly.”