UK Finance said that tokenized deposits could play a “vital role” in a future multi-money system alongside other digital assets.
Banks are exploring tokenized deposits as they test ways to move commercial bank money onto blockchain-based payment and settlement infrastructure, according to a new report from real-world asset data platform RWA.io
The report, which was authored by RWA.io with contributions from industry participants including UK Finance, Citi, BNY, JPMorgan’s Kinexys, Standard Chartered, ABN Amro and Digital Asset, argues that tokenized deposits are emerging alongside stablecoins and central bank digital currencies as part of a broader onchain cash stack.
Tokenized deposits are digital representations of traditional bank deposits on blockchain or other distributed ledger infrastructure. Unlike many stablecoins, they are direct liabilities of the issuing bank and sit within existing banking frameworks, including deposit insurance, capital requirements, and Anti-Money Laundering and Know Your Customer rules.
