JPMorgan warns a ‘parallel banking system’ is emerging—and it could put trillions in deposits at risk

Stablecoins continue to encroach on traditional banking.

Jamie Dimon [Photos: Getty Images]

Stablecoins that offer interest-bearing rewards may increasingly resemble bank deposits. But unlike traditional deposits, they lack the regulatory safeguards that undergird the banking system. That gap, according to JPMorgan CFO Jeremy Barnum, risks creating what he calls a “parallel banking system.”

The issue is already on lawmakers’ agenda. During JPMorgan’s fourth-quarter 2025 earnings call, Evercore analyst Glenn Schorr noted that Congress is preparing to debate stablecoin........

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