The future of digital finance increasingly hinges on the ability to integrate technological innovation with institutional solidity.
The future of digital finance increasingly hinges on the ability to integrate technological innovation with institutional solidity.
A recent report by RWA.io, created with contributions from 15 of the world’s leading financial and technological institutions, including Standard Chartered, Citi, BNY, Ondo Finance, and Alchemy, highlights how tokenized bank deposits are set to become a fundamental pillar of the next-generation digital financial system.
According to the research, tokenized deposits could ensure unprecedented resilience, enabling high-level institutional settlements directly on blockchain infrastructures.
This evolution not only promises to enhance transaction efficiency but also paves the way for a multi-layered system where stablecoin, CBDCs (central bank digital currencies), and tokenized deposits coexist and integrate.
The Potential of Tokenized Deposits: Numbers and Opportunities
The report highlights how the opportunity is enormous: in 2024, global customer deposits reached approximately $103 trillion, while the global money supply (M2) surpassed $140 trillion in 2025.
Even just a small portion of this liquidity, if transferred to blockchain infrastructures, could generate a tokenized deposit market significantly larger than the current stablecoin sector.
Marko Vidrih, co-founder and COO of RWA.io, highlights: “The global financial system still relies on commercial bank money. Bringing these funds onto digital rails will be key for the next generation of digital finance. Understanding how tokenized deposits fit into the digital ecosystem, alongside stablecoins and CBDCs, is crucial for those who want to lead the evolution of financial markets.”
Institutional Adoption: Concrete Cases and Global Experiments
The world’s leading banks are already experimenting with and implementing tokenized deposits for use cases such as 24/7 FX settlement, cross-border payments, and digital asset management. In the United States, J.P. Morgan has launched the Kinexys platform for programmable payments and real-time FX settlements.
BNY has initiated a tokenized deposit service for collateral and margin management, while Citi is developing its infrastructure through Citi Token Services, which enables the instant movement of funds on a private and permissioned blockchain.
Europe is also experimenting: the pilot project Great British Tokenized Deposit (GBTD), coordinated by UK Finance, involves several banks to test tokenized sterling deposits intended for payments on online marketplaces and settlement of digital assets.
In Asia, initiatives such as the Japanese platform DCJPY and Standard Chartered’s multi-currency solutions are expanding the use of digital bank deposits in corporate and digital asset markets.
Ryan Rugg, Global Head of Digital Assets at Citi, emphasizes: “Integrating digital tokens with clients’ fiat accounts means combining the innovation of blockchain with the trust and stability of Citi’s global infrastructure, unlocking speed, transparency, and control in cross-border payments.”
Regulation: Growing Clarity, But Not Everywhere
One of the key aspects for the scalability of tokenized deposits is regulatory clarity. In the United States, the GENIUS Act distinguishes between payment stablecoins and tokenized deposits issued by banks, which remain under the existing banking regulation.
In the United Kingdom, the FCA proposes a similar framework, while in the European Union the classification remains uncertain.
Mahesh Kini, Global Head of Cash Management at Standard Chartered, notes: “The regulatory framework in emerging markets is evolving rapidly. Tokenized deposits excel in enhancing efficiency and transparency within already existing regulatory frameworks.”
For commercial banks, this distinction represents an opportunity to modernize infrastructures, innovate offerings, and strengthen their role in the digital payments ecosystem. Conversely, those who do not adapt risk losing market share to more innovative operators.
Interoperability: the Crucial Infrastructure Challenge
Despite the growing adoption, the real challenge for the widespread dissemination of tokenized deposits remains interoperability. Unlike stablecoins, which can circulate freely on public blockchains, tokenized deposits are liabilities of individual banks and their utility depends on the ability to transfer and settle them between different institutions.
Projects like Partior (founded by J.P. Morgan, Standard Chartered, DBS, and Temasek), the aforementioned GBTD, and the Project Agorá initiative by the Bank for International Settlements are exploring models to enable the exchange of digital bank money on shared infrastructures.
Keith Bear, Fellow at the Cambridge Centre for Alternative Finance, emphasizes: “The main challenge is to implement and scale interbank settlement networks that make tokenized deposits effectively usable among institutions. Institutional adoption will depend on the supported use cases and the ability to achieve sufficient network effects.”
Blockchain and Infrastructure: The Fundamental Question
Another question concerns the maturity of blockchain infrastructures to support financial activities on an institutional scale. Joe Lau, co-founder of Alchemy, warns: “Many focus on regulation and interoperability, but the real question is: is blockchain ready for institutional money? The most forward-thinking institutions view the infrastructure as a long-term path, focusing on composable and compliant solutions that integrate with existing systems.”
Conclusions: Towards a Multilayered Digital Ecosystem
The RWA.io report highlights how the future of digital finance will not be dominated by a single form of digital currency, but by a multi-layered ecosystem where tokenized deposits, stablecoins, and CBDCs coexist and strengthen each other. The key to success will be the ability to ensure interoperability between institutions and platforms, along with clear and shared regulation.
Banks that can embrace this transformation will have the opportunity to redefine their role in the digital era, offering new services and strengthening customer trust. The journey has just begun, but the direction is clear: tokenized deposits are set to become the beating heart of global digital finance.
