There’s a growing debate in financial markets centers on whether stablecoins or tokenized deposits will become the preferred way to move money on blockchain rails. Stablecoins, such as Circle’s USDC and Tether’s USDT, are typically issued by private companies and backed by U.S. Treasuries in reserves.
Tokenized deposits, by contrast, are digital representations of commercial bank deposits and remain within the traditional banking system.
America’s biggest banks, including JPMorgan, Citi and Bank of America, plan to build a shared, tokenized deposit network by the first half of 2027. Blockchain infrastructure firm BitGo (BTGO) is working with ZKsync to build tokenized deposit infrastructure to bring banks onchain.
Anchorage said its platform is designed as a parallel layer that sits alongside existing banking infrastructure rather than requiring institutions to migrate to entirely new systems, a process that can take years and carry significant operational risks.
Read more: America’s largest banks are building a new digital currency network to stop a massive deposit drain
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