JPMorgan Highlights Global Push for Tokenized Deposits Over Stablecoins

Global financial regulators are increasingly favoring tokenized bank deposits over stablecoins, according to a recent JPMorgan report. The shift reflects a preference for digital money integrated within existing banking frameworks, prioritizing financial stability alongside blockchain innovation.

Non-bearer tokenized deposits are gaining traction due to their alignment with Core banking protections. These instruments maintain deposit insurance and central bank support while enabling blockchain interoperability. Analysts emphasize their role in reducing systemic risk and preserving monetary control.

Regulators outside the U.S., including the Bank of England, are leading this transition. The MOVE signals growing scrutiny of stablecoins and a broader institutional pivot toward regulated digital assets.