PANews reported on July 19 that according to The block, JPMorgan analysts said that regulators outside the United States, including the Bank of England, seem to prefer tokenized bank deposits rather than stablecoins as the two models compete for future status in the digital financial sector. Analysts such as JPMorgan Managing Director Nikolaos Panigirtzoglou cited recent remarks by Bank of England Governor Andrew Bailey that he prefers banks to offer tokenized deposits rather than issue their own stablecoins. This may indicate a general preference for overseas regulation.

Tokenized deposits are commercial bank deposits recorded on blockchain infrastructure. Analysts note that they retain the protections and backing of traditional deposits, such as deposit insurance, capital requirements, lender of last resort support, and compliance with anti-money laundering/know your customer (AML/KYC) rules, while offering programmability and blockchain interoperability.

Tokenized deposits can be divided into two forms: bearer deposits (transferable, such as stablecoins) and non-bearer deposits (non-transferable, settled at par between banks). Analysts say regulators are more likely to support non-bearer versions of currencies because it helps maintain "monetary money" - a core principle of the financial system that ensures different forms of money can be exchanged at par. On the other hand, bearer tokenized deposits and stablecoins may deviate from their pegs due to market factors such as credit risk or liquidity imbalances. This was evident in past crises involving Terra, FTX and Silicon Valley Bank, they noted.