#JPMorgan #JPMorganBitcoin #JPmorganAnalysis
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Here's the latest on JPMorgan's shift toward tokenized bank deposits and how it compares to stablecoins:
đč What JPMorgan Is Doing
Focusing on tokenized deposits over stablecoins: JPMorgan analysts, citing global regulators like the Bank of England, argue that tokenized bank deposits settle at face value, preserving the âsingleness of fiatâ better than stablecoins .
Pilot project: JPMD: JPMorgan is trialing a deposit token called JPMD on Coinbaseâs âBaseâ blockchainâa public layerâ2 network. It acts like a stablecoin but is strictly backed by onâbank deposits and limited to institutional clients .
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đŁ What the CEO Has Said
Jamie Dimon, CEO of JPMorgan, acknowledged:
> âWeâre going to be involved in both JPMorgan deposit coin and stablecoinsâŻâŠ to understand it, to be good at it.â
He called stablecoins ârealâ but questioned why one would use them instead of traditional payments .
The bank views both tokenized deposits and stablecoins as strategic defensive plays, essential for matching the agility of fintech competitors .
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đ Industry Context
Broader bank involvement: Other banks like Citi and Bank of America are also exploring tokenized deposits and preparing stablecoin frameworks, especially with the new U.S. stablecoin legislation (the Genius Act) unlocking clearer regulatory pathways .
Global regulator support: Institutions like the Bank of England and Oliver Wyman view tokenized deposits as more stable and compliant than privately-issued stablecoins .
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đ Why It Matters
Benefit Explanation
Integrity of fiat Tokenized deposits are fully backed by bank liabilities and follow existing regulationsâno detached asset pools or speculative risk.
Programmability These tokens can settle payments instantly, work 24/7, and perform smart contract roles like collateralization.
Regulatory alignment Since they originate from licensed banks, tokenized deposits align more easily with financial oversight frameworks.