I appreciate the JP Morgan history. So the reserves are only really useful when the banks themselves are in trouble? Or because of the digital aspect, the banks still don't need these reserves?
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Banks never relied upon reserves. Look at the history of the amount in circulation. They only started to grow after the Fed starts to pay interest on them (2007 or 2008). Before that, commercial banks had no use.
The banking system has ways around everything the Fed reqires. I mentioned a couple here.
As for banks, reserves are effective in aiding distressed banks in clearing their liabilities to other banks. Hence, if there is a massive outflow of deposits to other banks, like with Silicon Valley Bank, the reserves could be used to settle that.
Outside of that, there isnt much used for them that I can see because it is effectively inter-bank credit.