A Bloomberg report yesterday stated that JP Morgan is exploring a blockchain-based deposit token for cross-border payments. It says the bank would not create the token without approval from U.S. regulators. We explore what type of deposit token this might be, given we believe the bank already has the go ahead.
JP Morgan plans to use the product for corporate client transactions within a year of receiving the go ahead. The report is based on a source, but a JP Morgan spokesperson added, “Should that appetite develop, our blockchain infrastructure would be able to support the launch of deposit tokens relatively quickly.”
While stablecoin reserves involve ringfenced assets and are pseudonymous, deposit tokens are simply digital versions of bank deposits, which always require KYC.
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