What are Tokenized Deposit Networks?

Four companies are currently racing to develop tokenized deposit networks. The companies include The Clearing House Payments Co., The Cari Network, The Hazel Network, and The DTX Consortium. The Clearing House and Cari Network are being developed by the big banks. The Hazel Network is trying to create more of a niche by allowing customer deposits to convert into digital tokens and then issue, transfer, and redeem them as stablecoins. The DTX Consortium is being developed with a focus on community banks. Banks stand to benefit in different ways from each of these networks. Banks should not worry that they must act around tokenized deposits tomorrow, but they should start thinking about them. Wells Fargo is ready to roll out tokenized deposits this fall. They see tokenized deposits as a blockchain-based representation of commercial bank money that will enable customers to move, program, and settle funds 24/7/365, all within banking guidelines and regulations. This episode reviewed an article from FinXtech titled “Choosing the right tokenized deposit network” and an article from S&P Global (subscription required) titled “Wells Fargo to mint tokenized deposits for corporate, commercial clients in fall. A link to the FinXtech article is included below. Link: Choosing The Right Tokenized Deposit Network - FinXTech