Blockchain Money: Stablecoins vs Tokenized Deposits Revealed

Digital money on a blockchain can refer to two different financial relationships: stablecoins and tokenized deposits. A stablecoin is designed to maintain a relatively stable value against a reference asset, often a fiat currency, while a tokenized deposit represents a digital representation of a bank deposit.

According to a 2025 feasibility study involving PostFinance, Sygnum Bank, and UBS, clients transferred tokens representing bank deposits on a public blockchain. This allowed transactions to settle between participating institutions, demonstrating a specific cross-bank payment model.

The key distinction between stablecoins and tokenized deposits lies in the issuer, holder's claim, and the role the token performs when a transaction takes place. For example, a commercial bank issues a tokenized deposit, while the entity responsible for a stablecoin creates it.