Banks Put Deposits on Blockchain as Stablecoins Compete

Banks are putting deposits on blockchain networks to bring some stablecoin-like speed to payments while keeping accounts inside regulated institutions. A Benzinga analysis says this strategy could put banks and crypto issuers in competition, although neither model is certain to replace the other. The distinction starts with what each token represents. Tokenized deposits are money held at regulated banks. Conventional stablecoins generally represent claims on issuers backed by reserve assets. Both can use blockchain technology, but they operate under different legal, regulatory and financial arrangements, the source says.

Source: BlockTelegraph