Banks urged to combine tokenised deposits and stablecoins

At a webinar hosted by Fireblocks, industry panelists argued that banks should offer both tokenised deposits and bank‑issued stablecoins to meet corporate and correspondent needs for programmable liquidity and faster cross‑border payments. Speakers included Shrutisagar Chandrasekaran of Fireblocks and moderator Scott Hamilton.

Panelists described tokenised deposits as bank liabilities recorded on a regulated balance sheet and kept within a bank’s KYC perimeter. Those deposits support programmable functions such as real‑time cash concentration across legal entities, conditional disbursement, atomic settlement between corporate entities and automated liquidity sweeps.

Bank‑issued stablecoins were presented as a separate tool for moving value across borders and across capital‑control boundaries that can prevent local‑currency deposits from transferring freely. Panel commentary focused on stablecoins’ ability to bridge jurisdictions where deposits face restrictions or slow correspondent routes.

The speakers outlined several use cases that are already moving toward production. Examples include settlement processes that run outside traditional banking hours, delivery‑versus‑payment (DvP) that clears instantly rather than taking days, and treasury dashboards that provide consolidated visibility across entities without manual reconciliation. When combined, tokenised deposits and stablecoins can cover on‑balance programmable liquidity and the cross‑border leg of a transaction.

Demand is coming from corporate treasuries and from correspondent banks, counterparties and market infrastructure providers. Panelists reported that some correspondent banks now expect connectivity to tokenised rails and stablecoin networks; lacking those links can affect a bank’s competitiveness in requests for proposals.

Regulatory and policy constraints were a recurring topic. Panelists cautioned that technology does not remove regulatory hurdles such as capital requirements, local licensing or currency controls. Tokenised deposits fit within existing regulatory frameworks and can be deployed on a bank’s balance sheet under current rules. Bank‑issued stablecoins face differing rules across jurisdictions, which affects where and how they can be used.

Operational benefits for corporate clients and banks were described in practical terms. Tokenised deposits can reduce idle cash held across separate legal entities by enabling instant, conditional transfers and automatic liquidity sweeps. Stablecoins can accelerate international payables and receivables in corridors where traditional correspondent banking is slow or constrained.

Panelists concluded that offering both instruments addresses distinct parts of the payment flow. They noted that wider rollout will depend on regulatory clarity, cross‑border supervision arrangements and how capital and compliance rules are applied across jurisdictions.