Why Banks Are Building Tokenized Deposit Networks
Everyone's been watching the stablecoin story. Circle went public in June 2025 and its shares briefly surged well above the IPO price on debut [1][2]. Tether closed out 2025 with north of $10 billion in net profit, most of it earned on the back of a Treasury bill pile that now tops $122 billion [3]. USDC flows through more DeFi protocols than any other asset. It looks like a rout — crypto-native dollars quietly replacing bank deposits, one wallet at a time.
But the banks didn't sit still. And the counter-move they're making is bigger, slower, and far less flashy than anything happening in DeFi. It's called a tokenized deposit, and if it works, it could be the thing that keeps trillions of dollars from ever leaving the banking system in the first place.
Same Money, New Rails
A tokenized deposit isn't a new asset. It's your existing bank balance,...
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