Stablecoins could divert significant transaction volume and core deposits away from banks as retailers, fintechs, and Big Techs issue branded stablecoins that lead consumers to move cash into them for convenience, rewards, or programmability. This scenario could result in stablecoins becoming functional equivalents of bank deposits without the FDIC insurance, relationship ties, or regulatory protections banks provide. Deposit displacement has been happening for years, with $2.15 trillion leaving banks for fintech investment accounts, 65% of which has come from Gen Xers and Baby Boomers. JPMorgan is initially designed for institutional clients and will be issued on Coinbase’s Base blockchain, targeting on-chain settlements and cross-border B2B transfers. JPMorgan’s blockchain arm, Kinexys, markets it as a “deposit token”—a fully insured, interest-bearing digital representation of bank deposits—making it easy to reconcile with existing banking operations. By issuing tokenized bank money instead of a traditional stablecoin, JPMorgan safeguards its deposit base, ensuring it remains on-balance-sheet and insured. The GENIUS Act provides banks with regulatory clarity, defense against shadow banking, new revenue channels, and increased oversight from prudential regulators, SEC, FinCEN, and the Federal Reserve. Banks should prepare by defining a strategic position, identifying relevant use cases, investing in infrastructure, educating the board and C-suite, partnering with fintechs, blockchain infrastructure firms, or consortiums, and advocating for smart regulation. They must weigh the trade-offs between the opportunity to innovate versus the risk of disintermediation, as the cost of inaction may not be reputational but may be financial erosion as tech-native alternatives capture consumer funds.