Banks Bet Big on Tokenised Deposits as Blockchain Adoption Accelerates
The banking industry is making strides in adopting blockchain technology through tokenised bank deposits. This week, IBM connected its Digital Asset Haven platform to Swift's blockchain-based shared ledger, allowing banks to instruct tokenised deposit transfers using ISO 20022, a messaging standard for cross-border payments.
This integration aims to make blockchain capabilities more accessible and user-friendly for banks by leveraging existing infrastructure rather than building entirely separate systems. The technology is still in beta, but the direction is clear: banks are exploring ways to use tokenised deposits as a faster and programmable settlement option while keeping deposits as regulated bank liabilities.
Regulatory bodies, such as the CFTC Chair Michael Selig, are also preparing for 'mass tokenization' and 'onchain finance.' This shift in focus reflects a broader change in the discussion: policymakers and financial institutions are increasingly focused on how tokenised assets should operate within existing markets.