Banks Leverage Tokenized Deposits to Counter Stablecoin Growth

Banks are increasingly adopting tokenized deposits as a strategic alternative to stablecoins, aiming to modernize payment systems with programmable features and 24/7 settlement. While institutions frame this shift as a technological upgrade, industry experts like Falcon Finance's RWA officer Artem Tolkachev argue that the primary motivation is balance sheet management. By utilizing tokenized deposits, banks retain the underlying capital that would otherwise flow into stablecoin reserves, allowing them to continue funding their loan portfolios while maintain