Keep the deposit. Move it on stablecoin rails.
A tokenized deposit lets a bank keep the deposit, pay interest on it, and still move it at any hour, the way a stablecoin moves. It complements payment stablecoins rather than competing with them. Qanat Network brings banks the advice and the technology to offer it.
A deposit, on a ledger the bank controls.
A tokenized deposit is an ordinary bank deposit recorded on a ledger the bank controls. It remains the bank’s liability, stays on its balance sheet and funds its lending.
A payment stablecoin is a different instrument, and the difference is the commercial point.
Complements, not rivals. The payment stablecoin is how money travels on open networks. The tokenized deposit is where balances rest and earn.
| Attribute | Tokenized deposit | Payment stablecoin |
|---|---|---|
| Issuer | The bank | A stablecoin issuer |
| Legal nature | A deposit liability of the bank | A token backed one-for-one by reserves |
| Interest to the holder | Permitted | The issuer may not pay it |
| Treatment as a deposit | Treated as a deposit under the FDIC’s April 2026 proposal | No pass-through deposit insurance to holders under the same proposal |
| Where the funding sits | On the bank’s balance sheet | In the issuer’s reserves, outside the bank |
| Best suited to | Holding balances and earning interest | Payments and settlement on open networks |
The rules now favour the bank for holding balances.
- 2.1
Issuers cannot pay interest
The GENIUS Act, signed in July 2025, bars payment stablecoin issuers from paying interest to holders. Banks remain free to pay interest on deposits.
- 2.2
Tokenized deposits remain deposits
The FDIC’s April 2026 proposal would treat deposits in tokenized form as deposits. It is a proposal, not yet a final rule.
- 2.3
The gap is at regional banks
The largest banks have begun to offer tokenized deposits to institutions. Regional and community banks, and retail programs, are largely unserved.
Regulatory points are summarised for orientation and are not legal advice. Each bank’s counsel should confirm them.
A balance-sheet business, on new rails.
A bank gathers deposits and earns a margin on them. Each gain below ties back to that.
- 3.1
The deposit stays at the bank
A tokenized deposit remains the bank’s liability and stays on its balance sheet, where it continues to fund the bank’s own lending.
- 3.2
Interest the bank can pay
The bank may pay interest on balances held to earn. A payment stablecoin issuer may not. That difference is a reason for balances to rest at the bank.
- 3.3
Money that moves at any hour
Balances move at any hour on the bank’s ledger, rather than waiting for the business-day settlement cycles of existing rails.
- 3.4
Reach without issuing a stablecoin
The deposit gains a route to and from stablecoin liquidity. The bank issues deposits only; it does not become a stablecoin issuer.
- 3.5
Control and the customer
The bank sets the permissions on its ledger and keeps the account, the KYC and the customer relationship.
- 3.6
A capability, not a single program
Once in place, the capability can serve further programs and new markets, including businesses that already operate in stablecoins.
Private, permissioned, run by the bank.
Customer balances are recorded on a private ledger the bank runs, not on a public network.
The bank sets who may read and write to it. No public contract holds customer funds, and the bank can freeze or correct entries on its own ledger. The ledger works alongside the bank’s existing systems; it does not replace them.
What the bank touches. Its own ledger and U.S. dollars. The stablecoin side sits outside the bank.
The customer’s claim remains a deposit at the bank.
Advice first. Then the channel.
We start from the bank’s own position and build only what it decides to use. Advice and technology come under one agreement.
- i.
Assessment
Work with the bank’s leadership, risk, legal and technology teams to decide whether, and how, tokenized deposits fit its strategy and risk appetite.
- ii.
Pilot
Begin with a defined set of accounts, not a change of core, with limits and operating controls set by the bank.
- iii.
Operation
Support the bank as its tokenized deposits move to and from stablecoin networks, and as it extends the capability to further programs.
Part of the Pact Foundation ecosystem.
Qanat Network is a member of the Pact Foundation ecosystem. Our contribution to it is our work with banks on tokenized deposits.
Speak with us.
For bank owners and executives, and the teams who review the decision. Write to us to arrange a conversation.
contact@qanat.network