Tokenized money
Updated
What it is
Tokenized money refers to digital representations of fiat currency or bank deposits issued on blockchain rails, including stablecoins (issued by nonbanks, typically backed by reserves) and deposit tokens (issued directly by banks against customer deposits). Both aim to let money move and settle with blockchain speed and programmability while retaining a claim on real-world currency.
Why it matters lately
JPMorgan's deposit token, JPM Coin, was extended natively onto the Canton Network in a January 2026 announcement, alongside other major banks exploring similar deposit-token issuance. The broader stablecoin market, boosted by the GENIUS Act's 2025 passage establishing a federal regulatory framework, continued to grow through 2026, with total stablecoin supply exceeding $300 billion by mid-year according to industry trackers.
Asymmetric Analytics view
Inference (AA): ELSI treats the deposit-token vs. stablecoin split as a proxy for whether tokenized-money growth accrues to regulated banks or nonbank issuers.