JPMorgan CEO Jamie Dimon urged the bank to move faster on blockchain technology as tokenization reshapes finance.
"A whole new set of competitors is emerging based on blockchain," Dimon wrote in his annual shareholder letter.
These include stablecoins, smart contracts, and asset tokenization, which threaten traditional banking.
Dimon emphasized the need for JPMorgan to develop its own blockchain solutions and focus on customer needs.
The bank's Onyx unit, now Kinexys, has launched JPM Coin-a stablecoin enabling instant institutional transfers.
Tokenization of assets like bonds and money market funds is gaining traction among firms including BlackRock and Goldman Sachs.
While Dimon didn't support crypto assets like Bitcoin, he acknowledged growing institutional interest in digital assets.
He also cautioned about geopolitical risks and high asset prices affecting economic stability.
The shift to blockchain-based systems is structural, not temporary, Dimon said.
This marks a pivotal moment for financial institutions adapting to digital transformation.