What is the difference between a Tokenized Deposit and Stablecoin?
What is the difference between a tokenized deposit and stablecoin? Tokenized deposits are issued by a bank, denominated in fiat, backed 1:1 by funds on the bank’s balance sheet, and accessible only to customers who have completed standard KYC onboarding. Tokenized deposits operate on a permissioned network where participation is controlled and restricted to known parties. Stablecoin are digital tokens pegged to a currency and issued by a non-bank entity. Stablecoins like USDC or USDT are backed by reserves such as Treasury bills or cash equivalents. These reserves do not sit on the bank’s…
The skinny
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