Banks are increasingly exploring tokenised deposits as they move commercial bank money onto blockchain infrastructure, according to a report by RWA.io and major financial institutions.
The report, produced with contributors including UK Finance, Citi, BNY, JPMorgan’s Kinexys and Standard Chartered, positions tokenised deposits as a key component of an emerging onchain cash ecosystem alongside stablecoins and central bank digital currencies.
“Bringing that money onto digital rails will underpin the next generation of digital finance,”
Said RWA.io co-founder and chief operating officer, Marko Vidrih.
Tokenised deposits, which represent traditional bank deposits on distributed ledger systems, differ from stablecoins by remaining direct liabilities of banks and operating within existing regulatory frameworks such as deposit insurance and anti-money laundering rules.
UK Finance said tokenised deposits could play a “vital role” in a future multi-money system, complementing both privately issued instruments and potential central bank-backed digital currencies as financial infrastructure evolves.
Pilot projects are gaining traction across Europe, including a January transaction by Lloyds Banking Group and Archax on the Canton Network and the ongoing Great British Tokenised Deposit initiative testing payments and digital asset settlement through 2026.
The broader shift comes as the European Central Bank advances plans for a digital euro and tokenised settlement systems such as Pontes, with a launch targeted for 2026 as part of a wider push to modernise Europe’s financial rails.