How banks can profit from digital currencies

Finextra and CGI will host an online webinar examining how banks can profit from central bank digital currencies (CBDCs), stablecoins and tokenised deposits by addressing infrastructure, settlement and governance challenges. The event will bring together industry figures to discuss operational and commercial implications as digital money gains traction.

The panel includes Sean Devaney, vice-president of market strategy — payments at CGI; Naveen Mallela, global head of payments at Standard Chartered; Vincent Lau, director and global head of digital money at HSBC; and Scott Hamilton, global payments and liquidity expert, who will moderate.

Speakers will compare the infrastructure and process requirements for CBDCs, stablecoins and tokenised deposits. CBDCs generally rely on central bank rails or accounts and may require direct connections to monetary authorities or regulated intermediaries. Stablecoins are issued by private entities and depend on reserve management, custody arrangements and issuer governance. Tokenised deposits are bank-issued digital versions of deposits that sit on distributed ledgers and require integration between bank core systems and token platforms. Panelists will describe on- and offboarding links such as identity checks, custody of reserves or tokens, and conversion mechanisms between digital and fiat balances.

Settlement and liquidity will be discussed in detail. Real-time payment systems have already changed how banks manage intraday liquidity. Tokenised money could require faster or continuous settlement models, which can create demand for intraday credit lines, prefunding of accounts or direct access to central bank settlement balances. Multiple token platforms and private networks can increase operational complexity as firms move liquidity across different rails. The panel will also cover minting and burning mechanics and how those processes affect ledger balances, reserve needs and timing of funding flows.

Speakers will identify cost areas banks must plan for. Beyond system integration and node operations, banks face expenses for custody solutions, reconciliation between token and core ledgers, regulatory reporting, legal documentation, smart contract audits, and potential capital or collateral requirements. Operational risk management and security controls for smart contracts and third-party platforms are recurring cost drivers as services scale.

Control and governance will be a central topic. When settlement rails, token platforms or smart contract execution operate outside a bank’s direct control, banks will need to define which functions to keep and which to outsource. Typical functions retained by banks include client onboarding, compliance, custody for client assets and the settlement leg that touches their balance sheet. Technology operations, node hosting, market infrastructure access and some wallet services may be provided by third parties. Panelists will address how these arrangements compare with existing third-party models and how banks can align internal policies across multiple regulators with differing rules on token issuance, reserve backing, licensing and prudential treatment.

The webinar will outline commercial services banks can offer, such as custody and asset servicing for tokenised assets, acting as settlement agents or liquidity providers on token rails, issuing tokenised deposit products and providing programmable payments for corporate clients. Panelists will discuss the operational and regulatory work required to offer regulated on- and off-ramps between tokenised and traditional finance.

The session will focus on practical implementation questions and the operational steps banks must consider when adding digital money services to their product mix.