How the GENIUS Act Creates a Built-In Advantage for Banks and Deposit Tokens

As someone who has spent years working at the intersection of financial regulation and digital assets — including my time as a former FDIC regulator and as a policy strategist for major blockchain projects — I find JPMorgan’s leap into tokenized deposits on Base uniquely significant. Having witnessed up close how regulators navigate systemic risk and innovation, I know how rare it is for a global bank to embrace public blockchain rails for real institutional money movement.​

What makes this story especially intriguing for me is the regulatory nuance: tokenized deposits aren’t just another experiment — they represent a new chapter in bank-led payment innovation, occurring precisely because new frameworks and regulators have opened this door, allowing banks to compete directly with stablecoin issuers rather than merely imitating them. This moment may tip the balance of power in digital payments and offer insight into how regulation, technology, and financial markets are colliding in real time.

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JPMorgan’s Deposit Token Puts Stablecoins on Notice

JPMorgan is bringing institutional money onchain with JPMD on Base, betting that regulated deposit tokens can beat stablecoins at their own game.

While Tether ($185B) and Circle ($75B) must be fully collateralized and can't pay yield, JPMorgan's JPMD sidesteps both rules entirely.

It's structured as a bank deposit, not a payment stablecoin, so GENIUS Act restrictions don't apply.

The full investigation reveals:

• Why JPMorgan's OCC charter lets it move faster than Fed-regulated banks

• What regulatory barrier just got removed for JPM that stablecoin issuers still face

• Whether this loophole will force Treasury to redefine what counts as a stablecoin

• How banks who pushed for stablecoin yield bans could accidentally ban interest on their own tokens

This is the kind of deep investigation that flags hidden risks and regulatory shifts before they affect your portfolio, helping you spot opportunities others miss.