A tokenized deposit is issued by a regulated bank and keeps standard deposit-insurance treatment, unlike money held outside the banking system.
Non-bank stablecoins already move trillions of dollars a year on public blockchains, which is exactly the volume banks are trying to win back.
Tokenized deposits target corporate treasury and cross-border payments today; stablecoins serve traders, DeFi protocols and retail payments broadly.
If tokenized deposits from different banks can't easily settle against each other, the model risks rebuilding today's fragmented correspondent-banking system on new rails.
Whether The Clearing House's shared tokenized-deposit network actually connects Wells Fargo, JPMorgan and Citi will decide if banks can match stablecoins' reach.
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