Tokenized deposits are said to be vital for the future of digital finance. These digital assets will support round-the-clock settlement, instantaneous transfers, payments, and more. Multiple legacy banks are already heading in this direction. Firms like JP Morgan, Standard Chartered, Citi, BNY, and others.
RWA.io has published a report on tokenized deposits entitled “Tokenized Deposits: The Future of Money.” RWA.io is a platform enabling real-world asset tokenization
The supposition is that with global customer deposits totaling around $103 trillion in 2024, and the global M2 money supply exceeding $140 trillion in mid-2025, just a small portion of that liquidity moving onto blockchain infrastructure could create a tokenized deposit market far larger than today’s stablecoins.
Ryan Rugg, Global Head of Digital Assets at Treasury and Trade Solutions at Citi, says that by integrating digital tokens with fiat accounts, they can bring blockchain innovation to the trust and stability of Citi’s global infrastructure, “unlocking greater speed, transparency, and control in cross-border payments and liquidity management. This is about bringing the benefits of digital assets into a secure, regulated banking environment at scale.”
The report states that “tokenized deposits, which are digital representations of commercial bank money on a blockchain, serve a distinct and complementary role alongside stablecoins and CBDCs in the digital money ecosystem.”
And;
“Tokenized deposits are poised to become the backbone of institutional finance on the blockchain. They offer a path to a more efficient, transparent, and resilient financial system, built on the foundations of the existing two-tier banking structure.
Ian De Bode, President of Ondo Finance, predicts that tokenized deposits will exist alongside stablecoins in a complementary relationship. He adds that outside the US, tokenized treasuries are rapidly gaining traction and are growing significantly faster than stablecoins or tokenized deposits.
The report explains that tokenized deposits are a strategic opportunity for banks.
“The path forward requires continued collaboration between banks, regulators, and technology providers to build the interoperable, resilient, and trusted infrastructure that will underpin the future of money.”