What's the difference between a deposit token and a stablecoin?

The wider picture

The key points from the guide this answer comes from:

1. Banks are entering stablecoins two ways: issuing stablecoins through separate licensed companies, such as the Qivalis euro venture, and putting their own deposits on chain as deposit tokens, such as JPMorgan's JPMD.
2. Qivalis, a venture of 37 European banks, received an e-money licence from De Nederlandsche Bank on 14 October 2026 and plans to issue a euro stablecoin under MiCA within months, once its white paper is filed.
3. A deposit token is a bank deposit in token form: a claim on the bank, which can pay interest and may be covered by deposit insurance. A stablecoin is a claim on an issuer backed by a reserve, which can't pay interest.
4. For a business, bank tokens may bring stablecoin speed with a bank's balance sheet behind it, but early versions are permissioned: you need to be a client to hold one.

More questions on this

• When will the banks' euro stablecoin launch?
• Can my company hold JPMorgan's deposit token?
• Will bank stablecoins replace USDC and USDT?

The full guide

Banks are entering through licensed stablecoin issuers, such as the 37-bank Qivalis euro venture licensed in October 2026, and through deposit tokens such as JPMorgan's JPMD. A deposit token is a bank deposit that can pay interest; a stablecoin can't.

Read Bank-issued stablecoins and deposit tokens: what Qivalis and JPMD mean for businesses, with its sources.

General information, not legal, tax or financial advice. Rules and providers' terms change; check the sources in the guide and take advice on your own situation.