JPMorgan reveals global regulators favor tokenized bank deposits over stablecoins

The latest JPMorgan research suggests that international regulatory bodies are more inclined to support tokenized deposits, especially those that maintain the existing structure and stability of banking systems based on Fiat, block reported July 18.

According to Wall Street creditors, creditors financial regulators outside the United States show a growing preference for tokenized bank deposits over Stablecoins.

The trend emphasizes the shift in how traditional finances try to adapt digital technologies without jeopardizing basic regulatory and systemic guarantees.

Research led by Nikolaos Panigirtzogla JPMORGAN emphasizes how central banks and regulators, including the Bank of England, tend to digital instruments issued by commercial banks that remain fully integrated into the current financial system.

These tokenized deposits operate on the infrastructure of blockchain, while maintaining basic protection of traditional deposits, such as access to the liquidity of the central bank, capital bumpers and adherence to the rules against money washing.

Stability and control of concerns

The version of tokenized deposits attracting the most regulatory support is non-transferable species, also known as non-dock deposits, which are settled between accounts at full nominal value.

These tools minimize the risk of price deviations and maintain uniformity across money forms, which is a concept often referred to as “singleness of Money”.

On the other hand, stablecoins and portable digital deposits (in the style of wearers) may be subject to market value for loans or liquidity mismatch. In addition, market failures have increased red flags with potential volatility of privately issued digital currencies.

While Stablecoins Stay more used The JPMORGAN report noted on the crypto markets because of their easy transfer and wide liquidity that such assets often maintain their support in the traditional banking system by investing in tools such as short -term government debt.

Therefore, the regulated financial framework is not a real departure.

Different ways

In regions like the UK, they have regulatory bodies questioned the viability Allow commercial banks to issue stablecoins, especially according to framework that might require to keep the reserves of the central bank without generating return.

JPMORGANA analysis indicated that such conditions would reduce banks to issue their own stablecoins.

Meanwhile, American creators of politicians take a different attitude. Anticipated Passage of brilliant lawlegislative efforts led by president Donald TrumpIt would allow banks to issue stablecoins directly and support their use in domestic payments.

This signals a more open access to the integration of stablecoins into a wider financial ecosystem.

JPMORGAN itself is Examination of tokenized solutions over JPMDAuthorized deposit coin, which is currently piloted at the base. The creditor is also Water testing with stablecoins behind the closed door.

In June, the bank submitted a trademark for the product of the deposit tokens and showed potential applications in the settlement, programmable financing and transfers between banks.

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