JPMorgan Chase and Oliver Wyman, which is a corporation that specializes in consulting, worked together to do research on the potential applications of blockchain technology in commercial banking. The subsequent steps were for the two businesses to publish their findings in a report on February 9th, which was then made available to the entire public. On the other hand, the writers make it a point to underline the advantages given by deposit coins in terms of their dependability and stability. They say this as a point of differentiation between deposit coins and other cryptocurrencies. The authors highlight the benefits that may be obtained by using deposit coins, despite the fact that stablecoins and central bank digital currencies (CBDCs) have been the market leaders up until this point in time. Despite the fact that deposit coins could be utilized instead, this is still the case.

A depository institution will issue deposit tokens on a blockchain in order to guarantee that an accurate record of a deposit claim that has been made can be preserved. This will be done in order to ensure that an accurate record of a deposit claim that has been made can be maintained. Stablecoins and CBDCs, on the other hand, are often issued by a private company rather than a financial institution such as a bank. This stands in stark contrast to all that was just discussed. The fact that the issuer does not conform to the typical sort of financial institution is something that may work out to the issuer’s favor in a significant way. “Given that deposit tokens are commercial bank money embodied in a new technical form, they sit comfortably as part of the banking ecosystem, subject to regulation and supervision applicable to commercial banks today.”

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

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