The post Will deposit tokens like JPMD make stablecoins obsolete for institutional use? appeared on BitcoinEthereumNews.com.

JPMorgan Chase has created a new digital currency called JPMorgan Deposit Token (JPMD) that lives on the blockchain and is only available to trusted institutions like large corporations, asset managers, and pension funds. JPMD will cater to institutions that want the legal protections, interest payments, and bank integration that regular stablecoins don’t fully offer to move money quickly, safely, and around the clock.  JPMD combines traditional banking features with blockchain speed and access on a public blockchain (Base, built on Ethereum) to attract big institutions who fear stablecoins like USDC or USDT will raise concerns about regulation, stability, and trust. But will deposit tokens like JPMD completely replace stablecoins for institutional use, or will they simply serve different purposes and grow side by side? How are deposit tokens different from stablecoins? Deposit tokens fit into commercial banks’ existing financial and legal framework because they come with added benefits, like deposit insurance, interest payments, and accounting clarity for managing large volumes of funds. On the other hand, stablecoins don’t enjoy the same trust or integration with banks because the US Congress is still debating the rules around using and backing them. In addition, the openness and availability of stablecoins for trading, remittances, lending, DeFi protocols, and as a fast way to store and move value across borders have helped them grow into a $260 billion market. Constrastly, deposit coins set large transactions, enable tokenized securities, handle business-to-business payments, and manage digital cash in a way that ties back to a real-world bank account to serve the complex needs of institutions. So, while stablecoins operate outside the bounds of traditional finance and serve a wide global audience, deposit tokens help the banks move money faster and more efficiently within the trusted, regulated walls of the banking system. Why does JPMorgan believe JPMD…

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Filed under: News - @ June 22, 2025 1:14 am