JPMorgan Chase and Oliver Wyman, which is a corporation that specializes in consulting, worked together to investigate potential applications of blockchain technology in commercial banking. Subsequent steps were for the two companies to publish their findings in a report on February 9, which was then made available to the general public. On the other hand, the writers take pains to underline the advantages that deposit currencies provide in terms of reliability and stability. They say this as a point of differentiation between deposit coins and other cryptocurrencies. The authors highlight the benefits that can be gained from using deposit currencies, despite the fact that stablecoins and Central Bank Digital Currencies (CBDCs) have been the market leaders up to now. Even though deposit coins could be used instead, this is still the case.

A depository institution will issue deposit tokens on a blockchain to ensure that an accurate record of a deposit claim that has been made can be kept. This will be done to ensure that an accurate record of a deposit claim that has been made can be kept. Stablecoins and CBDCs, on the other hand, are often issued by a private company rather than a financial institution like a bank. This is in stark contrast to everything we have just discussed. The fact that the issuer does not fit the typical type of financial institution is something that can work in your favor significantly. “Since deposit tokens are commercial bank money incorporated in a new technical way, they sit comfortably as part of the banking ecosystem, subject to the regulation and supervision applicable to commercial banks today.”

The authors of the research note that regulation contributes to the development of trust, reduces the probability of a run on deposit tokens, and ensures trustworthiness, all at the same time.