Global banks are actively testing tokenized deposits on blockchain-based settlement infrastructures, according to RWA.io. The model converts bank deposits into digital tokens and is treated as the issuing bank’s direct liability, operating within existing regulatory regimes such as deposit insurance, capital rules, AML, and KYC. Participating institutions include Citi, BNY, JP Morgan (Kinexys), Standard Chartered, and ABN AMRO.
In Europe, experiments are moving rapidly. Lloyds Banking Group and the digital asset platform Artex have successfully conducted public blockchain-based tokenized deposit trades, and the UK financial sector is piloting projects that apply these tokens to peer-to-peer payments, lending, and digital asset settlements.
Analysts view tokenized deposits as a potential middle path between stablecoins and central bank digital currencies (CBDCs) in a multi-money world. Shifting bank deposits onto the blockchain could become a core infrastructure, enabling a coexistence of diverse digital currencies. The European Central Bank is advancing tokenization infrastructure alongside its digital euro efforts, with a 2027 pilot and integration work to connect traditional payment systems with blockchain-based settlement. As digital currency competition intensifies, banks are accelerating tokenized deposit initiatives to preserve payment and deposit capabilities.
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