Summary
- JP Morgan stated that financial regulatory authorities outside the United States are more favorable toward tokenized bank deposits than stablecoins.
- Tokenized deposits can be settled at face value in inter-account transactions, and it was noted that the risk of trading below face value is lower compared to stablecoins.
- Analysts said that tokenized deposits are advantageous for integration into existing banking systems and risk management, which leads to positive evaluations by financial authorities in several countries.
According to The Block, a media outlet specializing in digital assets (cryptocurrencies), on the 18th (local time), JP Morgan stated in a recent report that "financial regulatory authorities in several countries outside the United States are showing a more favorable attitude toward 'tokenized bank deposits' than stablecoins."
According to the outlet, tokenized deposits, which are issued based on bank deposits, are settled at face value in inter-account transactions, and a major advantage is that there is less risk of trading below face value in the market compared to stablecoins.
JP Morgan analysts explained, "From a regulatory perspective, tokenized deposits are more easily integrated into the existing banking system," and added, "Risk management is also easier, so financial authorities in several countries are evaluating them more positively."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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