19th June 2024 Digital Bytes

Tokenization of deposits: trends, challenges and potential - tokenized deposits are set to reshape banking assets into digital tokens using blockchain technology, whereby ensuring security and transparency. Major global banking titans such as Citi and JP Morgan are participating in initiatives exploring multi-asset settlement, being overseen by regulatory bodies. Regulatory involvement extends to central bank digital currency (CBDC) trials indicating the trend's significance, but with challenges including regulatory compliance and liquidity concerns; initiatives such as the UK Regulated Liability Network aim to address these. Tokenized deposits offer advantages over stablecoins, supported by institutional backing and regulatory clarity; they promise to transform wholesale markets, enabling seamless transactions and bolstering investor confidence in a future of borderless financial services.

Transforming insurance: the role of smart contracts in shaping the future - blockchain-powered s…