Are Deposit Tokens a way into DeFi?

Swiss banks are exploring an alternative to private stablecoins in an effort to support the country’s economy in digital asset transaction settlements and payment execution.

The Swiss Bankers Association revealed in a white paper it is researching the potential of a deposit token, that represents digital currency in the form of tokenized deposits based on distributed ledger technology.

Would you agree that private stablecoins are unlikely to gain broad acceptance because they lack the regulated nature of conventional money? I’ve seen people discussing this matter as well.

If that’s the case, I’ll check with Flynt Finance as a portfolio manager to decide what to do.

As I’ve heard, JPMorgan is also into deposit tokens. That led me to think that the rise of DeFi protocols may also result in the creation of liquidity pools for deposit tokens. What do you think?

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2 thoughts on “Are Deposit Tokens a way into DeFi?”

  1. Bullish on the future in which we have JPMusd, BACusd, WFCusd, MSusd, Cusd and a bunch of degens gambling on their peg based on the solvency of the respective banks.

  2. Deposit tokens may provide access to DeFi and a regulated substitute for private stablecoins. There is a chance that deposit token liquidity pools will develop as more conventional financial institutions enter the market. But before making an investment, it’s crucial to conduct extensive research


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