How Banks Could Combine Deposits and Stablecoins

A report examines how banks could combine traditional deposits and stablecoins to provide digital money services for consumers and businesses. It does not identify a specific bank, market or launch date.

Bank deposits support familiar services such as payments, savings and lending. They are liabilities of commercial banks and are used through cards, bank transfers and online banking platforms.

Stablecoins are digital tokens designed to keep a stable value, usually by being linked to a fiat currency such as the U.S. dollar or euro. They are recorded on blockchain networks, which allow transactions and ownership records to be maintained on digital ledgers.

Banks could connect deposits and stablecoins through regulated accounts, digital wallets and payment systems. Customers could hold money in a conventional deposit account and use stablecoins for selected transactions, including transfers between institutions, digital-asset payments and settlements outside standard banking hours.

A bank-based service could allow customers to convert deposits into stablecoins for digital transactions. They could later redeem the tokens for conventional bank money, subject to the service’s terms and applicable regulations.

The report examines how banks would manage the relationship between the two forms of money. Areas include rules for issuing or distributing stablecoins, reserve management, redemptions, customer protection, anti-money-laundering controls and financial reporting.

The proposed model would require banks to assess operational and financial risks. These include cyberattacks, failures in blockchain infrastructure, liquidity pressure during large-scale redemptions and differences in stablecoin rules across markets.

Banks would also need to modify payment infrastructure and internal controls. Customer information would need to explain how funds are held, when transactions settle and whether deposits and stablecoins receive the same legal protections.

The report treats deposits and stablecoins as separate products that could operate through the same bank. Deposits would continue to support conventional banking services, while stablecoins could be used for transactions on blockchain-based payment networks.