Banks Adopt Tokenized Deposits to Enhance Digital Payments
Global banks are shifting from traditional de-banking narratives to on-chain operations by issuing tokenized deposits—blockchain representations of bank liabilities that combine stablecoin liquidity with legal backing. Singapore’s DBS and J.P. Morgan are building a cross-chain framework to enable real-time settlement of tokenized deposits on Ethereum L2 Base and permissioned ledgers. Hong Kong plans a multi-layer digital currency model integrating CBDC, tokenized deposits, and regulated stablecoins. In the UK, six major banks launched a tokenized pound pilot covering cross-border payments, mortgages, and digital asset settlement through mid-2026. Japan’s SBI Shinsei Bank is testing cross-border tokenized settlements to cut costs and delays within existing regulations. Analysts foresee a three-tier monetary architecture—central bank digital currency, bank-issued tokenized deposits, and market-issued stablecoins—with tokenized cash and stablecoins projected to reach $3.6 trillion by 2030. This marks a shift from blockchain experiments to core financial infrastructure, signalling stronger institutional demand for on-chain liquidity and faster payments.
Bullish
Global banks’ adoption of tokenized deposits validates blockchain beyond niche experiments and underscores institutional demand for on-chain liquidity, faster settlements, and compliant stablecoin alternatives. Similar to past milestones—like SWIFT gpi accelerating cross-border payments—this move will boost demand for Ethereum L2 networks, regulated digital assets, and tokenized cash. In the short term, traders may see increased on-chain volume and interest in BASE and related tokens. Long term, the three-layer currency model (CBDC, bank-issued tokens, regulated stablecoins) will cement blockchain as critical financial infrastructure, underpinning a bullish outlook for digital asset adoption and infrastructure protocols.