Banks face tests as digital money launches go live

RedCompass Labs reports that banks’ operational readiness for digital money is under scrutiny after two major launches in June 2026. A 140-member consortium including Visa, Mastercard, BlackRock and Stripe put live Open USD, a shared stablecoin network. In the same month, JPMorgan, Citi, Bank of America and Wells Fargo announced a bank-led tokenised-deposit network through The Clearing House.

Open USD provides a common stablecoin rail for payments and settlements outside traditional bank accounts. The Clearing House network is designed to let banks issue tokenised deposits on shared infrastructure, keeping the deposits on bank balance sheets while recording transfers on distributed ledgers. SoFi integrated a stablecoin into its banking app, and remittance firms Western Union and MoneyGram began rolling out dollar token payments across their networks.

Central banks are also active. The European Central Bank plans to migrate central bank money to distributed ledger technology for wholesale settlement with its Pontos platform launching this quarter. The ECB has scheduled a retail digital euro pilot for 2027. Policymakers and lawmakers are finalising regulatory frameworks, including a U.S. bill under consideration, the EU’s Markets in Crypto‑Assets regime and new UK systemic stablecoin rules to set legal standards for issuance, custody and consumer protection.

RedCompass Labs outlines technical changes banks must make to handle multiple forms of digital money. Payment hubs need token-level settlement capabilities and links to real-time gross settlement systems. Banks require token custody services, on‑ and off‑ramps between account balances and token holdings, and upgraded liquidity tools to support instant or intraday settlement and atomic transfers.

Compliance and reporting will change. Firms must record token provenance, apply customer checks on rails that move value instantly, and provide transaction reporting across jurisdictions. Interoperability standards between different token systems and cross-border connections will be necessary for transactions that cross rails.

Use cases differ by rail. Stablecoins offer fast, low-cost cross-border transfers and are used in remittances and merchant settlement where non-bank providers have reach. Tokenised deposits offer native access to bank balance sheets and regulatory protections and are suited for corporate treasury, large-value business-to-business payments and intra-bank liquidity. Wholesale central bank digital currencies are focused on interbank settlement and high-value clearing. Retail CBDCs designed for broad access would create a public payment rail that could affect some retail payment flows.

RedCompass Labs’ data shows uneven industry readiness. Large global banks and payments firms have announced pilots, investments and partnerships for token platforms. Many regional and smaller banks have not finalised strategies or completed the required technology and operational changes. Common gaps identified include limited custody capabilities for tokens, insufficient real-time liquidity tooling, unclear interoperability standards, and a shortage of staff with distributed ledger and token engineering expertise.

The report notes that institutions expanding product plans, upgrading payment hubs for token-level processing, building custody and API interfaces, and aligning compliance and liquidity operations with new rails will be better positioned to connect to the emerging digital money infrastructure. Operational changes, live infrastructure and new rules are converging as market participants launch products across stablecoins, tokenised deposits and CBDCs.