According to reports from Wu, JPMorgan analysis indicates that regulators outside the United States are more inclined to support tokenized bank deposits rather than stablecoins. The Governor of the Bank of England stated a preference for bank-issued tokenized deposits over proprietary stablecoins.
Non-holding deposits can be settled at face value, which helps maintain 'monetary singularity' and is seen as having greater regulatory advantages. JPMorgan has tested its permissioned deposit token project JPMD on Base Layer 2 and submitted a related trademark application in June.
