The post Tokenized deposits push Europe toward next-gen digital money appeared on BitcoinEthereumNews.com.

As banks rewire payments and settlement systems, tokenized deposits are emerging as a central piece of the new onchain cash stack for global finance. Major banks push tokenized deposits onto blockchain rails Tokenized deposits are gaining momentum as leading banks test fresh ways to move commercial bank money onto blockchain infrastructure. A new report from RWA.io sets out how these instruments are evolving alongside stablecoins and central bank digital currencies, or CBDCs, within a layered digital money stack. The report, published with input from Citi, BNY, JPMorgan‘s Kinexys, Standard Chartered, ABN Amro, and Digital Asset, argues that tokenized deposits now form a core layer in the expanding onchain cash stack. Moreover, several European pilots have already moved beyond proof-of-concept into live market testing. These instruments are direct bank liabilities and benefit from existing deposit insurance regimes. As a result, they slot neatly into current regulatory frameworks while complying with strict Anti-Money Laundering and Know Your Customer rules, a contrast with many privately issued stablecoins. This more regulated footing gives banks confidence that they can deploy tokenized instruments at scale. Consequently, institutions increasingly view them as a credible way to bring commercial money onto blockchain-based networks without undermining existing prudential safeguards. UK tokenized deposit pilots set early benchmarks In January, Lloyds Banking Group and Archax executed the United Kingdom’s first tokenized deposit transaction on a public blockchain. The deal ran on the Canton Network, marking a significant milestone for European banking experiments with tokenized liabilities. At the same time, UK Finance is coordinating its Great British tokenized deposit pilots, an industry-wide program running through mid-2026. The initiative is testing peer-to-peer payments, remortgaging flows, and digital-asset settlement, all powered by tokenized claims on bank balances. UK Finance has said that tokenized deposits will play a “vital role” in a future multi-money world,…

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Filed under: News - @ March 23, 2026 10:29 am