#CryptoMarket4T Stablecoins are not a substitute for traditional bank deposits just yet, but that may change soon, according to Morgan Stanley analysts.

Although stablecoins currently lack deposit insurance and do not pay interest, their utility in fast 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. Grasic note, adding that some are already responding by developing tokenized deposits, as JPMorgan Chase & Co. (NYSE:JPM) has done with its JPM Coin and planned JPMD currency.