JPMorgan Sees Promise in ‘Deposit Tokens’ Issued by Banks
- Study: New form of digital money has edge over stablecoins
- The tokens could be used in DeFi and cross-border payments
JPMorgan Chase & Co. offices in London.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
A potential new form of digital money — deposit tokens issued by banks on blockchain — may become more widely used than stablecoins, a JPMorgan Chase & Co. study found.
Commercial banks can play a key role in digital money by issuing the tokens, according to the study co-published with consulting firm Oliver Wyman. The tokens represent the same deposit claims as balances held at a bank, but are recorded on a blockchain and can be used for cross-border payments or on decentralized-finance platforms.