Banks face readiness gaps as digital money launches

New analysis from RedCompass Labs finds many banks are not fully prepared to handle the arrival of multiple forms of digital money even as significant infrastructure launches occurred in June 2026. The report highlights gaps in systems, skills and legal frameworks as stablecoins, tokenised deposits and central bank digital currencies move into live pilots and production.

In June, a 140-member consortium launched Open USD, a shared stablecoin network that includes payments and asset firms such as Visa, Mastercard, BlackRock and Stripe. In the same month, The Clearing House announced a bank-led tokenised-deposit network backed by large US banks including JPMorgan, Citi, Bank of America and Wells Fargo. Retail and remittance providers also deployed token solutions: SoFi added a stablecoin inside its banking app, while Western Union and MoneyGram introduced dollar tokens for remittances. The European Central Bank is placing central bank money on distributed ledger technology for wholesale settlement via its Pontos platform, due to launch this quarter, and it plans a retail digital euro pilot in 2027.

RedCompass Labs’ data identifies specific readiness shortfalls at incumbent banks. The report cites weaknesses in back-office integration, tools for real-time liquidity and settlement, and custody operations for tokens. It also flags limited staff experience with distributed ledger networks and incomplete plans for compliance and legal frameworks covering token issuance, cross-border transfers and KYC/AML for programmable money.

The analysis describes how different institutions are focusing on different layers. Large retail and commercial banks are leading the build-out of tokenised deposits through consortium efforts that keep traditional deposit relationships and balance-sheet treatment. Non-bank and technology firms are prominent in the stablecoin layer, often partnering with banks or shared networks. Central banks are advancing CBDC pilots and wholesale rails intended for interbank settlement and business-to-business payment finality.

RedCompass Labs outlines how rail choice varies by use case. Shared stablecoin networks on public or permissioned blockchains target fast, low-cost cross-border and consumer payments, including remittances and merchant acceptance. Tokenised deposits on bank-governed networks are positioned for high-value corporate payments and internal liquidity optimisation because they can mirror traditional deposit accounting. CBDC rails are described as suited to wholesale settlement and central bank money settlement, offering settlement finality that can reduce counterparty and liquidity risk for interbank and B2B flows.

The report details operational implications for banks. Implementing tokenised deposits requires updates to payment engines, ledger integration and treasury systems so token balances reconcile with core deposits. Stablecoins issued off a bank’s balance sheet can shift transaction volumes away from deposit accounts unless banks issue or custody those tokens. Retail CBDC issuance that permits direct central bank holdings could change deposit structures and prompt banks to develop two-tier models, digital custody services or enhanced deposit products to retain funding.

Technical tasks listed in the analysis include building custody with hot and cold key management, integrating smart-contract settlement into back-office reconciliation, provisioning liquidity across rails and implementing APIs for real-time settlements. On legal and compliance, the report calls for clear issuer liability models, KYC/AML processes adapted for token flows and payment messaging standards that support atomic settlement and cross-jurisdictional interoperability.

Regulatory developments are already influencing market design. In the United States, proposed legislation such as the GENIUS Act aims to set rules for stablecoins and tokenised deposits. The European Union’s Markets in Crypto-Assets framework and the United Kingdom’s systemic stablecoin regime provide legal regimes in their jurisdictions. RedCompass Labs notes banks need to align product designs with these evolving rules to operate cross-border and serve corporate clients.

RedCompass Labs identifies several factors that will affect how banks proceed: choosing which layers to support directly; upgrading payment and treasury infrastructure; forming partnerships with technology providers and other financial institutions; engaging with regulators; and putting operational controls in place for custody and liquidity. The report states that banks that can integrate token rails with existing client services and operate secure, scalable settlement infrastructure will be better placed to use the new rails as they come into use.