Stablecoins vs Tokenized Deposits: Why the Differences Matter

Tokenized
deposits,
sometimes
known
as
deposit
tokens,
are
blockchain
representations
of
fiat
currency
bank
deposits.
They
are
issued
by
banks,
backed
by
fiat
deposits
at
those
banks,
and
can
run
on
either
private
or
public
blockchains
(although,
since
these
are
heavily
regulated
entities,
they’ll
want
complete
control
of
access).
In
some
cases,
such
as
with

JPMorgan’s
JPM
Coin,
they
are
used
to
settle
transactions
between
JPMorgan
clients.
In
others,
such
as

SocGen’s
EURCV,
they
can
be
transferred
to
clients
who
do
not
have
accounts
at
the
issuer
bank,
but
only
after
being
whitelisted.