JPMorgan chief financial officer Jeremy Barnum told investors in an earnings call that stablecoin yields are a “dangerous and undesirable thing.”
Stablecoin issuers and third-party platforms that pay interest to stablecoin holders are creating an “undesirable” parallel banking system, says JPMorgan financial chief Jeremy Barnum.
Barnum told investors during the bank’s fourth-quarter earnings call on Tuesday that its advocacy to ban all yield payments on stablecoins is “in the spirit of the GENIUS Act legislation,” which banned issuers from paying yield on their tokens.
“The creation of a parallel banking system that has all the features of banking, including something that looks a lot like a deposit that pays interest without the associated prudential safeguards that have been developed over hundreds of years of bank regulation is, an obviously like, dangerous and undesirable thing,” he said.
