Tokenised deposits

The increasing expansion and development of blockchain into a world of its own highlights the need for digital forms of payment. The core concept is to create a way to transfer value that will function as a liquid means of payment and storage of value in blockchain-native environments aside from stablecoins. Deposits tokens were first proposed by DBS Bank, JPMorgan and SGX, May 2022 when Project Guardian was launched as a form of digital money. They are the equivalent of the already existing deposits, held by licensed depository institutions but recorded on a blockchain. Tokenised deposits, such as bank deposits, can support several use cases such as trading and settlement, domestic and cross-border payments and provision of cash collateral. The Swiss Bank Association (SBA) published a white paper about four months ago with the aim of introducing a tokenised Swiss Franc; the bank association is now coordinating a tokenised deposit project with a selection of other banks.

Source: Oliver…