Banks Face Readiness Gaps Ahead of Digital-Money Wave

New data from RedCompass Labs details gaps in bank preparedness as multiple digital-money initiatives reach production in 2026. In June a 140-member consortium that includes Visa, Mastercard, BlackRock and Stripe launched Open USD, a shared stablecoin network. The Clearing House announced a bank-led tokenised-deposit network with participants including JPMorgan, Citi, Bank of America and Wells Fargo. SoFi placed a stablecoin inside its app, and Western Union and MoneyGram rolled out dollar tokens across remittance corridors. The European Central Bank plans to move central bank money onto distributed ledger technology, with its wholesale settlement platform Pontos scheduled to launch this quarter and a retail digital euro pilot set for 2027.

RedCompass Labs groups digital money into three layers: stablecoins, tokenised deposits and central bank digital currencies. The analysis reports many banks have not completed upgrades to payment hubs, integration of token management systems, or established operational procedures for custody, reconciliation and settlement. The report highlights gaps on technology, operations and regulatory readiness.

Banks have taken different approaches by layer. Some institutions are supporting tokenised deposits that remain on bank balance sheets and settle across controlled rails. Other banks are partnering with or issuing stablecoins aimed at faster retail and cross-border payments. Where central banks are developing DLT-based wholesale settlement, banks are preparing connectivity to those platforms and assessing impacts on liquidity management.

Rail and cross-border considerations feature prominently in the data. Stablecoins and private tokens can run on public or permissioned blockchains and provide speed and programmability, but they rely on on- and off-ramps, compliance controls and liquidity corridors for cross-border flows. Tokenised deposits can use bank-controlled rails and existing settlement systems. CBDC infrastructure will require direct or indirect access models and new central bank interfaces.

The report sets out likely effects on payment hubs and deposit bases. Tokenised deposits that stay on bank balance sheets are expected to integrate with existing payment and liquidity management systems, changing internal settlement flows while preserving core deposit liabilities. Third-party stablecoins and non-bank dollar tokens could draw customer funds away from traditional deposit products unless banks provide tokenised alternatives or custodial services. Wholesale CBDC platforms such as Pontos will alter interbank settlement mechanics and may require changes to intraday liquidity and collateral management.

RedCompass Labs identifies several factors that will differentiate institutions: clear regulatory compliance and licensing approaches, robust custody and operational controls for tokens, defined connectivity to multiple rails and central-bank platforms, and the ability to provide reliable on/off ramps and liquidity services. The report references regulatory frameworks including Europe’s MiCA, the UK’s systemic stablecoin regime and proposed U.S. legislation such as the GENIUS Act.

The data indicates infrastructure work, legal review and operational testing remain before banks can scale services from pilots and partnerships to production.