Banks Challenge Stablecoin Supremacy with Tokenised Deposits

The battle for programmable money is shifting from crypto markets to traditional banking. The debate over digital currency has centered on central bank digital currencies and stablecoins, but a new player has emerged: tokenised deposits.

Tokenised deposits are commercial bank liabilities represented and transferred on programmable digital infrastructure, rather than through conventional account ledgers. This distinction matters because it allows users to retain the benefits of always-on, programmable settlement without leaving the regulated banking system.

The International Monetary Fund notes that tokenised deposits inherit much of the institutional architecture from non-tokenised equivalents, including regulation, supervision, and liquidity facilities. In contrast, stablecoins are privately issued reserve-backed tokens whose par value depends on reserve quality, liquidity, and operational capacity.

Project Agorá has demonstrated atomic multi-currency settlement using tokenised commercial bank deposits alongside tokenised central bank reserves. This has significant implications for cross-border payments, as it allows for always-on, programmable, and atomic settlement while preserving finality in central bank money.