Do stablecoins pose a threat to bank deposits?
- Stablecoins are not a substitute for traditional bank deposits yet, but this may change soon, according to Morgan Stanley analysts.
Although stablecoins currently lack deposit insurance and do not pay interest, their utility in rapid settlement and global access to the dollar may make them increasingly attractive—especially to institutional users.
Banks should not be complacent," the analysts led by Betsy L. Graseck note, adding that some are already responding by developing crypto deposits, as JPMorgan (NYSE:JPM) has done with its JPM Coin and the planned JPMD currency.
