# Bank-issued stablecoins and deposit tokens: what Qivalis and JPMD mean for businesses

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.

By Pavel Skalin, Founder & CEO, Align · Updated 2 November 2026 · 4 min read · https://alignlabs.dev/guides/bank-issued-stablecoins-deposit-tokens

## Key takeaways

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.

## The short answer

Banks are building their own stablecoins and tokenized deposits. In Europe, 37 banks in the **Qivalis** venture have a licence to issue a euro stablecoin under MiCA, with issuance expected within months. In Hong Kong, **HSBC** holds one of the first two stablecoin issuer licences. In the US, **JPMorgan** runs **JPMD**, a dollar deposit token on the Base network for its institutional clients.

These aren't all the same thing. A bank-backed stablecoin is issued by a licensed company against a reserve, like USDC. A deposit token is the bank's own deposit, moved on a blockchain. For a business, the first works like the stablecoins you know; the second works like your bank account, only programmable and faster to move between clients.

## Stablecoins and deposit tokens compared

| | Stablecoin, including bank-backed ones | Deposit token |
|---|---|---|
| What you hold | A claim on the issuer, backed by a separate reserve | A deposit at the issuing bank |
| Issuer | An e-money institution or permitted issuer, which may be owned by banks | The bank itself |
| Interest to holders | Banned for issuers in the EU (MiCA) and the US (GENIUS Act) | Possible: JPMorgan says its deposit token can be interest-bearing |
| Deposit insurance | No | May be eligible, under existing frameworks |
| Who can hold it | Generally anyone with a compatible wallet, subject to the issuer's terms | Usually only the bank's clients |
| Examples | USDC, EURC, Qivalis (planned), HSBC's planned Hong Kong dollar stablecoin | JPMorgan's JPMD |

## Qivalis: the banks' euro stablecoin

Qivalis was announced in December 2025 by a group of European banks including BNP Paribas, ING, UniCredit, CaixaBank, Danske Bank, KBC, SEB and Raiffeisen Bank International, to issue a euro stablecoin regulated under MiCA. By May 2026 it had 37 member banks after 25 more joined. It's based in Amsterdam.

On 14 October 2026, De Nederlandsche Bank authorized Qivalis as an electronic money institution, which makes it eligible to issue euro e-money tokens. Before issuing, it must submit its MiCA white paper, which sets out holder rights, the technology and the risks, to DNB, which then has 20 working days to review it. The company has said issuance will begin "within the next months".

A bank-backed euro token would join a small market. On 2 November 2026, DefiLlama counted about €846 million of euro stablecoins, about 60% of it Circle's EURC and about 23% Société Générale-Forge's EURCV, itself a bank-issued token. See [EURC vs USDC](https://alignlabs.dev/guides/eurc-vs-usdc).

## Deposit tokens: JPMorgan's JPMD

JPMorgan announced a pilot of JPMD, a US dollar deposit token, on Base in June 2025, and The Block reported its official rollout to institutional clients on Base in November 2025. JPMorgan's Kinexys unit describes deposit tokens as digital representations of commercial bank deposits that can be interest-bearing. JPMD runs on a public network, but it's permissioned: only the bank's clients can hold it.

## Hong Kong: banks as licensed issuers

On 10 April 2026, the Hong Kong Monetary Authority granted its first stablecoin issuer licences, to HSBC and Anchorpoint Financial, a venture involving Standard Chartered. HSBC has said it plans a Hong Kong dollar stablecoin, fully backed by high-quality liquid assets held in segregated accounts. See [stablecoin regulation by country](https://alignlabs.dev/guides/stablecoin-regulation-by-country).

## What it means for a business

- **More choice in euros.** A bank-backed euro stablecoin could make euro on-chain payments easier to accept for counterparties that trust their own banks more than a crypto company.
- **Access depends on the token.** Bank stablecoins are designed to circulate widely; deposit tokens, so far, stay within the bank's clients.
- **Check the issuer's status** the way you would for USDC or USDT: the licence, the white paper or terms, the reserve reports, and who can redeem.
- **Liquidity takes time.** A new token starts with few exchanges and providers supporting it. Before invoicing in one, check that your customers and your provider support it on the same network.

## How this works with Align

Align supports USDC, USDT and EURC today, and pays out in USD, EUR, GBP and AED from [named accounts in your company's name](https://alignlabs.dev/products/virtual-accounts). As bank-issued tokens launch, check with Align which ones it supports before you invoice in them. Align is registered with FINTRAC in Canada as a money services business and isn't authorized under MiCA.

## Sources

- Qivalis, [Joint venture of a European banking consortium to launch euro stablecoin in the second half of 2026](https://newsroom.kbc.com/qivalis-joint-venture-of-a-european-banking-consortium-to-launch-euro-stablecoin-in-the-second-half-of-2026) (2 December 2025)
- The Block, [Qivalis expands euro stablecoin consortium to 37 banks](https://www.theblock.co/post/402001/qivalis-expands-euro-stablecoin-consortium-to-37-banks) (May 2026)
- Cointelegraph, [Qivalis receives EMI authorization from Dutch central bank for euro stablecoin](https://cointelegraph.com/news/qivalis-authorization-dutch-central-bank-euro-stablecoin) and CoinMarketCap, [Qivalis wins Dutch e-money license](https://coinmarketcap.com/academy/article/qivalis-euro-stablecoin-dutch-emi-license) (October 2026)
- J.P. Morgan, [Kinexys USD digital deposit tokens](https://www.jpmorgan.com/payments/newsroom/kinexys-usd-digital-deposit-tokens)
- The Block, [JPMorgan to launch deposit token JPMD on Base in pilot involving Coinbase](https://www.theblock.co/post/358624/jpmorgan-to-launch-deposit-token-jpmd-on-base-in-pilot-involving-coinbase) (June 2025) and [JPMorgan officially rolls out JPM Coin deposit token on Base](https://www.theblock.co/post/378493/jpmorgan-deposit-token-jpm-coin) (November 2025)
- Hong Kong Monetary Authority, [Granting of stablecoin issuer licences](https://www.hkma.gov.hk/eng/news-and-media/press-releases/2026/04/20260410-4/) (10 April 2026)
- DefiLlama, [Stablecoins](https://defillama.com/stablecoins) (2 November 2026)

## Common questions

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

A deposit token represents money already held as a deposit at the issuing bank, so it's the bank's liability like any deposit, can be interest-bearing, and may be eligible for deposit insurance. A stablecoin is issued against a separate pool of reserves, by an e-money institution or a permitted issuer, and in the EU and US the issuer can't pay holders interest.

### When will the banks' euro stablecoin launch?

Qivalis received its e-money licence on 14 October 2026. Before it can issue, it must submit its MiCA white paper to De Nederlandsche Bank, which has 20 working days to review it. The company has said issuance will begin within the next months; it originally targeted the second half of 2026.

### Can my company hold JPMorgan's deposit token?

Only as a JPMorgan client with access to the bank's blockchain services. JPMD runs on Base, a public network, but it's permissioned: the bank can't open it to anonymous wallets.

### Will bank stablecoins replace USDC and USDT?

Not soon. In early November 2026, USDT and USDC together had about $250 billion in circulation, and all euro stablecoins about €850 million. Bank tokens start small and serve their own clients first. They're more likely to sit alongside existing stablecoins, especially in euros, where the market is small.

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This guide is general information, not legal, tax or financial advice. Rules and providers' terms change; check the sources linked above and take advice on your own situation.

## Related guides

- [EURC vs USDC: when a business should hold euros on chain instead of dollars](https://alignlabs.dev/guides/eurc-vs-usdc)
- [Stablecoin regulation by country in 2026: EU, US, UK, UAE, Hong Kong and Singapore](https://alignlabs.dev/guides/stablecoin-regulation-by-country)
- [USDT vs USDC for business payments: which to hold and which to send](https://alignlabs.dev/guides/usdt-vs-usdc-for-business)
- [Where a business can earn yield on USDC and USDT, and what the risks are](https://alignlabs.dev/guides/earn-yield-on-usdc)