JPMorgan analysts have observed a preference for deposit tokens over stablecoins in countries outside the United States. This trend stems from concerns surrounding the stability and reliability of stablecoins. Why Deposit Tokens Are Gaining Traction The key concern highlighted by JPMorgan is the potential for stablecoins to "depeg." This occurs when a stablecoin's value deviates significantly from its intended peg, typically $1 USD. This can happen due to credit risk associated with the assets backing the stablecoin or liquidity imbalances within the stablecoin's ecosystem. Deposit tokens, representing claims on deposits held at regulated institutions, are perceived as less susceptible to these risks. Implications for the Crypto Landscape This preference could reshape the global cryptocurrency landscape, potentially influencing the adoption of different digital asset models and driving innovation in the regulated token space. It also underscores the importance of robust regulatory frameworks for stablecoins to ensure investor protection and market stability. ```