Fed Research Compares Wholesale CBDCs to Tokenized Deposits
The Federal Reserve has published a research paper comparing wholesale CBDC settlement to tokenized commercial bank deposits. This paper does not signal the launch of a central bank digital currency, nor is it an endorsement of cryptocurrencies.
Wholesale CBDCs are designed for financial institutions and market infrastructure, whereas retail CBDC debates focus on consumer payments. Tokenized deposits represent commercial bank money on digital rails, preserving traditional banking roles while allowing faster settlement and programmable workflows.
The core debate centers on settlement efficiency, handling legal finality, resilience, privacy, compliance, cyber risk, operational controls, and central bank oversight. The Fed's research examines models and trade-offs rather than making sweeping claims.