2025 Supervisors Symposium

Stablecoins vs Tokenized Deposits Summary Stablecoins vs Tokenized Deposits

Stablecoins • Digitally-native tokens pegged to a fiat currency (typically USD)

• Transact on public blockchains (e.g., Ethereum, Solana) • Backed by fully reserved assets such as cash, T-bills, or repos • Examples: USDC (Circle), PYUSD (PayPal), USDT (Tether) • Function like digital bearer instruments , enabling peer-to-peer payments without intermediaries Tokenized Deposits • Bank-issued digital tokens representing commercial bank money • Operate on private, permissioned blockchains • Backed by fractional reserves and often carry deposit insurance • Examples: JPM Coin (J.P. Morgan), USDF (bank consortium), Citi Token Services • Functionally like today’s deposit accounts, but optimized for programmability and atomic settlement Key Distinctions

Stablecoins

Tokenized Deposits Regulated banks Fractional reserves Private, permissioned Institutional, interbank

Issuer

Fintech or non-bank entities Fully reserved (e.g., T-bills) B2B, cross-border, consumer GENIUS Act (U.S. pending) Public, permissionless

Backing

Blockchain Type Use Case Focus

Regulation

Covered by existing banking regs

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STRATEGIC RESOURCE MANAGEMENT | CONFIDENTIAL

Strategic Implications

STRATEGIC RESOURCE MANAGEMENT | CONFIDENTIAL