How safe are interest-bearing stablecoins? A senior executive at JPMorgan recently raised a thought-provoking question for the market.

His core point is straightforward: many current interest-bearing stablecoins are essentially building a "parallel banking system." This system offers deposit and interest functions but lacks the regulatory framework and risk protection mechanisms that traditional banks have accumulated over hundreds of years. The result is—extremely high risk and hard to accept.

The logic behind this phenomenon is quite clear. Traditional banks can provide deposit protection because of multiple safeguards such as central banks, deposit insurance, and prudent regulation. What about most on-chain stablecoin projects? These protections are basically absent. When users invest funds into interest-bearing stablecoins to seek returns, they are operating at a completely different risk level.

It’s worth noting that JPMorgan is not opposed to blockchain or innovation. Their stance is: support technological progress, but also acknowledge reality—that not all innovations should be approached with traditional financial logic. The regulatory framework for stablecoins still needs to be re-evaluated. This isn’t about blocking but about finding a more sustainable path.