JPMorgan: "Non-US Financial Regulatory Authorities Prefer Tokenized Deposits Over Stablecoins"

An analysis suggests that financial regulatory authorities in major countries outside the United States tend to prefer tokenized bank deposits over stablecoins.

According to The Block on the 18th (local time), JPMorgan stated, "Recently, BoE Governor Andrew Bailey said it is preferable for banks to provide services in the form of tokenized deposits rather than issuing their own stablecoins," adding, "This signals that global regulatory authorities favor broader regulations."

JPMorgan further predicted, "Tokenized deposits are highly likely to be adopted as a priority over stablecoins during the construction of future digital financial infrastructure."

Meanwhile, tokenized deposits refer to traditional bank deposits recorded on blockchains. Just like conventional deposits, the protection systems such as deposit insurance, capital requirements, lender of last resort support, and AML/KYC regulations are maintained, while also featuring programmable payments and blockchain interoperability.