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Banks move deposits on-chain through permissioned token systems
Tokenized deposits are structured as regulated bank liabilities, keeping them more private and permissioned than stablecoins, which are designed to circulate in secondary markets.
CoinDesk’s weekly newsletter on crypto for financial advisors highlights how banks are beginning to move deposits onto blockchain rails, but using permissioned environments rather than open networks. The newsletter points to examples including Citi and BNY using private blockchain infrastructure, and JPMorgan launching JPMD, a permissioned deposit token on the public Base blockchain. Even when the infrastructure changes, it says deposits remain permissioned because they are deposit liabilities of regulated banks.
A key distinction, according to CoinDesk, is that tokenized deposits reflect an ongoing relationship with a specific bank, while stablecoins are structured as bearer-like instruments intended to circulate in secondary markets. The GENIUS Act is described as adding Bank Secrecy Act and anti-money-laundering obligations for permitted issuers, but not altering that core difference between tokenized deposits and stablecoins.
CoinDesk also notes that tokenized deposits are not presented as one-for-one backed instruments in the way a fully reserved payment token might be, since a bank deposit is a claim against the bank itself and depends on prudential requirements. The newsletter adds that banks’ BSA/AML and sanctions compliance obligations can limit how broadly deposit tokens can circulate.