Banks weigh infrastructure and liquidity in digital-currency race

A recent webinar hosted by Finextra in association with CGI brought together industry experts to outline the operational steps banks must take to work with central bank digital currencies (CBDCs), stablecoins and tokenised deposits.

Panelists described how each form of digital money needs a different technical setup. CBDCs typically use central bank settlement systems or tightly permissioned access to central bank balances. Stablecoins are usually issued by private firms and can run on public or permissioned blockchains, creating differing custody, governance and compliance requirements. Tokenised deposits are bank liabilities recorded on distributed ledgers and connect more directly to banks’ core systems.

Speakers addressed customer on- and offboarding. Banks will be responsible for know-your-customer and anti-money-laundering checks when converting fiat deposits into tokens, providing wallets or custodial services, and linking ledger systems to existing payment rails. Decisions about who mints and redeems tokens have operational effects and affect balance sheets for institutions that act as issuers or facilitators.

Settlement and liquidity were highlighted as operational challenges. Real-time settlement shifts intraday funding needs and reduces the time banks have to fund positions. For CBDCs, access to central bank reserves will determine a bank’s ability to settle tokenised transactions instantly. For stablecoins, composability across decentralized networks can fragment liquidity and require new treasury practices such as more frequent settlement cycles and intraday funding buffers.

The webinar outlined persistent and sometimes overlooked costs. Integration between distributed ledgers and core banking systems, vendor fees for network access, enhanced compliance controls, additional capital or liquidity buffers, and higher operational risk controls add to project budgets. Cybersecurity and custody for tokenised assets and wallets were identified as recurring expense areas, and many costs will remain while banks participate in tokenised finance markets.

Control of digital-money processes was another focus. Banks are expected to retain customer-facing roles including onboarding, KYC/AML, deposit-taking and credit provision, and can offer custody, payment initiation and treasury services. Other functions such as certain ledger operations, network governance and settlement mechanics may be handled by cloud providers, blockchain operators or stablecoin issuers, affecting liability, regulatory reporting and auditability.

Regulatory uncertainty was raised across jurisdictions. Panelists pointed to recent legislative interest in stablecoins, including the US GENIUS Act, and said banks need programs that can adapt to differing rules across borders. Variations in national frameworks increase governance requirements and compliance costs.

Speakers identified service opportunities for banks: minting and redemption services, custody for tokenised assets, settlement-as-a-service between ledgers and payment systems, and new treasury products for real-time liquidity management. They also noted potential extensions of existing products through programmable deposits and token-based trade finance and securities settlement.

The webinar concluded that banks planning to operate in digital-currency markets should define their roles clearly, invest in systems integration and risk controls, and engage with policymakers and infrastructure providers to align technical and compliance arrangements.