JPMorgan analysts say regulators outside the U.S. are showing a clear preference for tokenized bank deposits over stablecoins, with the Bank of England among those backing the model.
These blockchain-based deposits retain traditional protections like insurance and central bank support while enabling programmable payments.
Non-transferable tokenized deposits, which settle at face value between banks, are viewed as safer and more stable than bearer-style assets like stablecoins, which can lose their peg due to market volatility—an issue highlighted by past crises involving Terra and FTX.
Despite their regulatory appeal, tokenized deposits lack the liquidity and flexibility that make stablecoins dominant in crypto markets. Analysts also note that under some proposals, stablecoin issuance may be unprofitable for banks due to interest-free reserve requirements.
The U.S. is taking a different stance with the GENIUS Act, set to be signed by President Trump, which encourages bank-issued stablecoins. Meanwhile, JPMorgan is testing its own blockchain-based deposit token, JPMD, on Ethereum’s Base network.
Source
Kosta Gushterov
Reporter at Coindoo
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
Source: https://coindoo.com/jpmorgan-global-regulators-lean-toward-tokenized-deposits-over-stablecoins/