There is a growing debate in financial market centers over 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. Treasury bonds in reserves.
Tokenized deposits, on the other hand, are digital representations of commercial bank deposits and remain within the traditional banking system.
America’s largest banks, including JPMorgan, Citi and Bank of America, plan to build a shared, tokenized deposit network by the first half of 2027. Blockchain infrastructure company BitGo (BTGO) is work with ZKsync to build tokenized deposit infrastructure to make banks onchain.
Anchorage said the 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 pose significant operational risks.
Read more: America’s biggest banks are building a new digital currency network to stop a massive deposit drain