Stablecoins vs Tokenized Deposits: Why the Differences Matter

Tokenized deposits, sometimes known as deposit tokens, are blockchain representations of bank deposits in fiat currency. They are issued by banks, backed by fiduciary deposits at those banks, and can run on either private or public blockchains (although since these are heavily regulated entities, they will want full access control). In some cases, such as with JPM Coin of JPMorganare used to settle transactions between JPMorgan clients. In others, such as EURCV of SocGenthey can be transferred to customers who do not have accounts with the issuing bank, but only after they have been whitelisted.