CoinVoice has recently learned that, according to The Block, JPMorgan analysts indicate that regulators outside the United States, including the Bank of England, are favoring tokenized bank deposits over stablecoins. The reasons include that the former can be settled at face value, have deposit insurance, KYC/AML compliance, and other traditional financial protections, while also possessing blockchain programmability and interoperability.
The Managing Director Nikolaos Panigirtzoglou pointed out that non-anonymous tokenized deposits are favored for ensuring 'monetary singularity,' while stablecoins face credit risk and price deviation issues, as evidenced by past crises such as Terra, FTX, and Silicon Valley Bank.
Nevertheless, analysts acknowledge that stablecoins still dominate the crypto ecosystem due to their high liquidity and convenience of transfers, and they add that stablecoin funds have not left the banking system, often flowing back in the form of government bonds.
Meanwhile, U.S. President Trump is about to sign the (GENIUS Act), granting banks the legality to issue stablecoins, and JPMorgan is also testing its tokenized deposit solution JPMD on Layer-2 networks and has submitted a trademark application. [Original link]