The most significant development in the last few years has been the creation of crypto The stablecoin is a range of tokens that are blockchain-enabled and tied to fiat currencies such as the U.S. Dollar.
However, new study By the JPMorgan’s blockchain unit Onyx says A deposit token, a cryptocurrency that is backed by institutions, has the potential for becoming more well-known than stablecoins.
Trades often turn to Ether and Bitcoin because of the volatility in these cryptocurrencies. stablecoins To store their assets in a safe asset, and to make international payments. These uses would be covered by deposit tokens, but the blockchain-based coins are fully integrated with traditional banking systems.
While the tokens remain a conceptual concept, study They said could Banks would issue them and they would be commercial bank money, but digitally. This would allow for greater uses.
“The token form enables new functionality, such as programmability and instant, atomic settlement to speed up transactions and automate sophisticated payment operations,” According to study.
These would be able to address some setbacks. stablecoinsIncludes challenges could It is necessary to deal with the large number of transactions that an increase in institutional adoption might bring.
Because tokens are equal to bank cash, JPMorgan They will be able to win over others, argues. stablecoins Regulations already in effect to encourage commercial bank deposits
“We believe deposit tokens will become a widely used form of money within the digital asset ecosystem, just as commercial bank money in the form of bank deposits makes up over 90% of circulating money today,” The bank wrote it in study.
Tokens for deposit could Serve as an alternative that has been approved by regulators stablecoinsRegulations have increased scrutiny of these products. The New York Department of Financial Services issued Monday’s order to the New York-based crypto Paxos, a company from China, announced it was ending its partnership with Binance. It also said that it would stop producing BUSD, the stablecoin created by the collaboration between the two. crypto exchange.
The world’s third-largest stablecoin by market value was once.
The Wall Street Journal reported The Securities and Exchange Commission will sue Paxos on Sunday for allegedly unregistered securities in its BUSD stablecoin. The enforcement could Any U.S.-based property is at risk stablecoins, like Circle’s USDC, which is second only in market cap to Tether’s USDT.
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