Tokenized Deposits: How Banks Are Bringing Deposits On-Chain

Who's issuing them, how they're being deployed, and what this means for infrastructure providers

Traditional institutions are picking up the pace in crypto. Quietly, banks have started turning their own deposits into tokens. These deposits come in two forms:

• Tokenized deposits - traditional bank deposits mirrored as tokens on a ledger. Settlement between banks still occurs on existing bank rails (Fedwire/SWIFT), but on-chain, you get near-instant movement. The bank’s liabilities and assets remain unchanged.

• Deposit tokens - a more native on-chain version of the same thing. The token itself is the deposit and can settle directly between banks on the blockchain, without needing a corresponding Fedwire/SWIFT transaction.

While the distinction between “tokenized deposits” and “deposit tokens” can appear superficial, it has emerged in multiple industry discussions, so we reflect it here as it is commonly referenced.¹²

Banks are currently experimenting with both approaches. In this piece, we treat both as forms of bank-issued tokenized deposits.

Who is actually doing this today?

Disclaimer: These programs are evolving rapidly, and public disclosures by banks differ. This table reflects the best publicly available information as of December 2025 and should not be viewed as a comprehensive, definitive, or final registry.

Note on Project Ensemble: A shared infrastructure environment created by the Hong Kong Monetary Authority (HKMA) for cross-bank settlement and tokenized asset transfers. Banks plug their own ledgers/platform into Ensemble.

What we’re seeing

• Private networks dominate: Most projects run on private or permissioned networks. Banks gravitate toward closed systems for transaction controls and AML/KYC obligations. HSBC, DBS, UBS, Western Alliance, Customers Bank, and VersaBank all use private ledgers. Many banks (HSBC, Standard Chartered, DBS, UBS, and Bank of China) are integrating with central‑bank infrastructures such as Project Ensemble.³

• Public networks are emerging: A smaller group of institutions is beginning to bridge into public blockchains. J.P. Morgan launched JPMD on the Base (Ethereum L2) network in November 2025.⁴ Custodia and Vantage Bank are also using public networks.⁵ Regulatory and compliance uncertainty still limits the wider adoption of permissionless chains.

• Cross‑bank interoperability is essential: Projects like Ensemble aim to enable real-value transfers of tokenized deposits between banks. DBS and J.P. Morgan are building frameworks that allow tokens issued on different blockchains to be redeemed or transferred.⁶

• Multi-currency support: Projects cover USD, HKD, SGD, GBP, EUR, CHF, and CNY, with more expected as banks expand.

• Treated as traditional deposits: In the U.S., tokenized deposits are being treated like traditional deposits from a regulatory and insurance perspective, although guidance is still being worked on.⁷ Globally, tokenized deposits are typically regulated under existing banking or e-money frameworks, but the exact insurance coverage and protections depend on local rules.⁸

Why does this matter?

There’s now real demand from banks, not just stablecoin issuers. Tokenized deposits finally give traditional institutions a bridge to 24/7, near-instant settlement using wrapped deposits that are potentially insured like traditional deposits. Banks now have real-world utility and can step into crypto without stepping outside their usual regulatory perimeter. For infrastructure providers, the opportunity is shifting toward interoperability, confidentiality, and compliance, rather than L1 maximalism.

Looking ahead

Tokenized deposits are still early, but the direction is clear. Banks are experimenting with multiple types of architectures (private ledgers, public chains, shared interbank infrastructure) to bring everyday money on-chain. As these pilots progress and start to commercialize, infrastructure providers that can support interoperability, privacy, and regulatory alignment will be the best positioned to serve the next phase of institutional adoption.

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1. KPMG — Deposit Tokens: Bridging traditional banking and the digital economy. KPMG (Global Insights), n.d. https://kpmg.com/xx/en/our-insights/value-creation/deposit-tokens-bridging-traditional-banking-and-the-digital-economy.html

2. Noelle Acheson (American Banker) — The key difference between a “tokenized deposit” and a “deposit token”. American Banker, Nov. 20, 2025. https://www.americanbanker.com/news/the-key-difference-between-a-tokenized-deposit-and-a-deposit-token

3. Hong Kong Monetary Authority (HKMA) — HKMA announces the new phase of Project Ensemble to support real-value transactions in tokenised deposits and digital assets, press release, 13 Nov 2025. https://www.hkma.gov.hk/eng/news-and-media/press-releases/2025/11/20251113-3/

4. J.P. Morgan / Kinexys — JPM Coin: Bringing institutional deposits on chain, J.P. Morgan (product page). https://www.jpmorgan.com/kinexys/digital-payments/jpm-coin

5. Vantage Bank & Custodia Bank — Custodia Bank and Vantage Bank Issue America’s First Bank-Issued Stablecoin On A Permissionless Blockchain, Vantage Bank, Nov 10, 2025. https://www.vantage.bank/insights/custodia-bank-and-vantage-bank-issue-america-s-first-bank-issued-stablecoin-on-a-permissionless-blockchain

6. Yahoo Finance — JPMorgan and DBS Explore Tokenized Deposit Interoperability in Quest for Multi-Bank Framework, Yahoo Finance, Nov 11, 2025. https://finance.yahoo.com/news/jpmorgan-dbs-explore-tokenized-deposit-140215778.html

7. ABA Banking Journal — FDIC considering tokenized deposit insurance guidance, stablecoin issuer rules, American Bankers Association, Nov. 14, 2025. https://bankingjournal.aba.com/2025/11/fdic-considering-tokenized-deposit-insurance-guidance-stablecoin-issuer-rules/

8. KPMG — Deposit Tokens: Bridging traditional banking and the digital economy, KPMG (Global Insights), n.d. https://kpmg.com/xx/en/our-insights/value-creation/deposit-tokens-bridging-traditional-banking-and-the-digital-economy.html

Additional Sources

Customers Bank & Tassat — Customers Bank and Tassat Launch Blockchain-Enabled Instant Payments on TassatPay™, Business Wire, Oct 18, 2021. https://www.businesswire.com/news/home/20211018005969/en/Customers-Bank-and-Tassat-Launch-Blockchain-Enabled-Instant-Payments-on-TassatPay

HSBC — Tokenised Deposit Service, HSBC Business Solutions (product page), n.d. https://www.business.hsbc.com/en-gb/solutions/tokenised-deposit-service

Ledger Insights — Hong Kong launches tokenized deposit pilots. A wholesale CBDC soon, not yet, Ledger Insights, Nov 17, 2025. https://www.ledgerinsights.com/hong-kong-launches-tokenized-deposit-pilots-a-wholesale-cbdc-soon-not-yet/

Mastercard — Mastercard, Standard Chartered, Mox and Libeara successfully complete a proof-of-concept pilot on tokenized deposits and tokenized carbon credits through regulatory sandbox, May 14, 2024. https://www.mastercard.com/us/en/news-and-trends/Insights/2024/tokenizing-real-world-assets-and-currencies-is-essential-for-the.html

Tassat (official) — Western Alliance Bank Partners with Tassat to Deliver Blockchain-Based Payments Network to Business Clients, TassatPay, n.d. https://tassat.com/western-alliance-partners-tassat/

UBS — UBS successfully pilots blockchain-based multi-currency payment solution with UBS Digital Cash, UBS News Release, Nov 7, 2024. https://www.ubs.com/global/en/media/display-page-ndp/en-20241107-ubs-digital-cash.html

UBS & Ant International — UBS and Ant International Partner on Blockchain-Based Real-Time Cross-Border Payments Settlement and Liquidity Management, Business Wire (press release), Nov 16, 2025. https://www.businesswire.com/news/home/20251116743090/en/UBS-and-Ant-International-Partner-on-Blockchain-Based-Real-Time-Cross-Border-Payments-Settlement-and-Liquidity-Management

VersaBank — VersaBank Unveils Branding for Proprietary Digital Deposit Receipts: VeraBank Real Bank Deposit Tokens™ Reflects Critical Advantage of Issuance by a Federally Licensed Bank, PR Newswire, Oct 27, 2025. https://www.prnewswire.com/news-releases/versabank-unveils-branding-for-propreitary-digital-deposit-receipts-versabank-real-bank-deposit-tokens-reflects-critical-advantage-of-issuance-by-a-federally-licensed-bank-302594788.html