# Stablecoins vs tokenized bank deposits A tokenized bank deposit represents a commercial-bank deposit recorded or used on a programmable ledger. A stablecoin normally represents a separate token claim or protocol mechanism. The important distinction is the legal liability and settlement arrangement, not whether both use blockchain software; products marketed as deposit tokens can use different transfer models. Evidence: [Stablecoins versus tokenised deposits](https://www.bis.org/publications/bulletin-73-stablecoins-versus-tokenised-deposits-implications-singleness-money.pdf) Canonical: https://degreesofsatoshi.com/encyclopedia/stablecoins-vs-tokenized-deposits/ Published: 2026-10-02 Substantively modified: 2026-10-02 Independently verified by an automated reviewer: 2026-10-02T19:26:58.461Z Data current through: 2026-10-02 AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied. ## Key facts - **Liability:** A tokenized deposit remains a claim on its issuing commercial bank in the deposit model discussed here. ([Stablecoins versus tokenised deposits](https://www.bis.org/publications/bulletin-73-stablecoins-versus-tokenised-deposits-implications-singleness-money.pdf)) - **Transfer:** The BIS comparison distinguishes bearer-like token transfers from debiting and crediting bank deposits. ([Stablecoins versus tokenised deposits](https://www.bis.org/publications/bulletin-73-stablecoins-versus-tokenised-deposits-implications-singleness-money.pdf)) - **Scope:** Tokenization does not by itself make a bank liability central-bank money. ([Stablecoins versus tokenised deposits](https://www.bis.org/publications/bulletin-73-stablecoins-versus-tokenised-deposits-implications-singleness-money.pdf); [Money and Payments: The U.S. Dollar in the Age of Digital Transformation](https://www.federalreserve.gov/cbdc-faqs.htm)) ## Follow the claim through a payment In the bank-deposit model, a payment can reduce a customer’s balance at one bank and increase the recipient’s balance at another, with a separate settlement between banks. The recipient need not acquire a deposit claim against the sender’s bank. In a bearer-like stablecoin transfer, the recipient typically receives the same issuer’s token that the sender held. Changing the owner of that claim differs from moving between two banks’ own deposit liabilities. These are conceptual models; implementation details must be checked. Evidence: [Stablecoins versus tokenised deposits](https://www.bis.org/publications/bulletin-73-stablecoins-versus-tokenised-deposits-implications-singleness-money.pdf) ## A familiar balance can travel through unfamiliar infrastructure Imagine a customer with 100 units at Bank A paying a supplier at Bank B. Ask whether Bank B credits its own deposit liability, or whether the supplier instead ends up holding a transferable claim issued by Bank A. Both interfaces might describe the result as a digital payment. That question reveals more than the ledger’s name. Also ask which institutions can participate, what settles the banks’ obligations, and whether a holder can redeem directly. Evidence: [Stablecoins versus tokenised deposits](https://www.bis.org/publications/bulletin-73-stablecoins-versus-tokenised-deposits-implications-singleness-money.pdf) ## Read the product’s deposit status separately A token symbol is not enough to establish deposit-insurance eligibility, bankruptcy treatment or access to an issuer. Those depend on the underlying product, holder and jurisdiction. The BIS paper provides a framework for comparison rather than a guarantee for every instrument sold under a similar label. Use the issuer’s current account agreement and the relevant local protection scheme when assessing a real product. Do not transfer protection assumptions from an ordinary bank account to an unrelated stablecoin. Evidence: [Stablecoins versus tokenised deposits](https://www.bis.org/publications/bulletin-73-stablecoins-versus-tokenised-deposits-implications-singleness-money.pdf) ## Questions ### Does putting a bank deposit on a blockchain eliminate bank risk? No. Changing the recordkeeping or payment technology does not remove the identity of the institution that owes the deposit. The liability and applicable protections still need to be understood. Evidence: [Stablecoins versus tokenised deposits](https://www.bis.org/publications/bulletin-73-stablecoins-versus-tokenised-deposits-implications-singleness-money.pdf) ## Claims and scope ### stablecoins-vs-tokenized-deposits-quick-answer A tokenized bank deposit represents a commercial-bank deposit recorded or used on a programmable ledger. A stablecoin normally represents a separate token claim or protocol mechanism. The important distinction is the legal liability and settlement arrangement, not whether both use blockchain software; products marketed as deposit tokens can use different transfer models. Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null} ### stablecoins-vs-tokenized-deposits-fact-liability Liability: A tokenized deposit remains a claim on its issuing commercial bank in the deposit model discussed here. Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null} ### stablecoins-vs-tokenized-deposits-fact-transfer Transfer: The BIS comparison distinguishes bearer-like token transfers from debiting and crediting bank deposits. Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null} ### stablecoins-vs-tokenized-deposits-fact-scope Scope: Tokenization does not by itself make a bank liability central-bank money. Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null} ## Sources - [Stablecoins versus tokenised deposits](https://www.bis.org/publications/bulletin-73-stablecoins-versus-tokenised-deposits-implications-singleness-money.pdf) — BIS authors Garratt and Shin. Analytical comparison of bearer-like stablecoins and bank-deposit transfer models; author analysis, not a universal implementation rule. Locator: Two models of private tokenised money, pp. 1–6, especially non-bearer transfers and protections on pp. 4–6. Retrieved: 2026-10-02T19:02:33.899Z. - [Money and Payments: The U.S. Dollar in the Age of Digital Transformation](https://www.federalreserve.gov/cbdc-faqs.htm) — Federal Reserve. CBDC definition as digital central-bank liability; no claim that a US CBDC is launched. Locator: Redirected discussion-paper summary: first paragraph defining CBDC as a liability of the central bank. Retrieved: 2026-10-02T18:51:05.445Z. ## Revision history - 2026-10-02: First publication after primary-source research and separate automated verification. ## Cite this entry Degrees of Satoshi editorial project. “Stablecoins vs tokenized bank deposits.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/stablecoins-vs-tokenized-deposits/