Stablecoins vs. Tokenized Deposits: Which Aligns with Your Institution’s Future?

Regional banks, global institutions, and fintech innovators alike are exploring what a digital asset-enabled future could look like. If you‘re also ready to explore your options, you’ll first need to evaluate which digital asset models best align with your mission and monetization goals: stablecoins or tokenized deposits? 

What Are Stablecoins and Tokenized Deposits? 

Stablecoins are blockchain-based digital assets pegged to fiat currencies, typically issued by non-bank entities. With the passage of the GENIUS Act, stablecoins now operate under a federal framework that provides regulatory clarity around issuance, reserve requirements, and disclosures, making them a viable option for banks to consider. 

Tokenized deposits, on the other hand, are digital representations of customer deposits issued by regulated banks and recorded on permissioned blockchains. These instruments maintain the legal and regulatory characteristics of traditional deposits while enabling programmability and real-time settlement. 

Which Approach Is Right for You? 

This decision depends on your institution’s strategic priorities: 

• Customer focus: Are you looking to enhance retail payment experiences or streamline institutional settlement?  

• Technology readiness: Do you have the infrastructure to support blockchain-based operations, or are you exploring partnerships to get started?  

• Regulatory alignment: Does your institution prefer to operate within existing banking regulations, or are you open to engaging with newer frameworks like those introduced by the GENIUS Act?  

• Revenue strategy: Are you aiming to monetize through custody services, transaction fees, FX, or infrastructure enablement? 

Stablecoins and tokenized deposits offer distinct paths to digital asset adoption. The right choice depends on how each model supports your bank’s strategic priorities. 

Let’s Talk Strategy 

Regardless of whether you’re exploring a high–effort or low-touch integration or partnership, now is the time to define your digital asset roadmap. With over 100 years of experience in financial services and our vast experience in the digital asset sector, Wolf & Company’s proven history of service positions us as the advisor of choice for institutions ready to offer digital assets. 

Meet with our team of experts today.