Digital money is moving beyond a single model. Stablecoins, tokenized commercial-bank deposits and central bank digital currencies (CBDCs) are developing in parallel, but each represents a different financial claim and solves a different part of the payments problem.
Stablecoins are privately issued digital tokens designed to track assets such as the US dollar. They can move around public blockchains continuously and are widely used for crypto trading, decentralized finance and cross-border transfers.
According to CoinMarketCap, global stablecoin market capitalization stands at USD 314 billion. However, stablecoins do not automatically function like ordinary bank money.
The Bank for International Settlements (BIS) notes that USDT and USDC, for example, may trade at slightly different prices in secondary markets, particularly during stress. Stablecoins are also fragmented across different blockchains, meaning even representations of the same asset may require bridges or other infrastructure to move between networks.
Their growing use could also affect bank funding, monetary sovereignty and capital flows, particularly in countries where dollar-backed tokens become substitutes for domestic currencies.
Tokenized deposits take a different approach. They represent conventional commercial-bank deposits on programmable infrastructure. The issuing bank remains liable for the money, while transfers between banks can ultimately settle using central-bank reserves.
This preserves what the BIS calls monetary ‘singleness’: one unit of bank money remains redeemable at par with another rather than trading at changing exchange rates.
Tokenized deposits could also support programmable payments, automated compliance and around-the-clock settlement. But adoption remains limited. The BIS says tokenized deposits are still largely being explored in wholesale finance rather than everyday consumer transactions.
The strongest evidence that tokenized banking infrastructure can work at scale comes from Project Agorá.
The BIS initiative brings together eight central banks and more than 40 regulated financial institutions to test tokenized commercial-bank deposits alongside tokenized central-bank reserves.
In July 2026, 28 institutions and central banks conducted real-value tests covering 17 transaction scenarios and approximately CHF 800,000 in payments across currencies including USD, EUR, GBP, JPY, KRW and CHF.
Average settlement took approximately 80 seconds, demonstrating atomic cross-border settlement using real monetary value rather than simulated transactions.
CBDCs represent direct central-bank liabilities rather than claims on private issuers or commercial banks. A BIS survey found that 91% of 93 central banks surveyed were exploring retail CBDCs, wholesale CBDCs or both, with wholesale projects generally further advanced. More than one-third had accelerated CBDC work partly given developments in stablecoins and cryptoassets.
Europe provides one of the clearest examples. The European Central Bank has selected 36 payment-service providers for its digital euro pilot, scheduled to begin in the second half of 2027. The Eurosystem aims to be technically ready for a potential first issuance in 2029, assuming the necessary legislation is adopted.
Why this MattersDigital money could evolve into a layered system where stablecoins provide open-network payments, tokenized deposits support regulated banking and CBDCs anchor settlement. The decisive challenge will be making these systems interoperable without sacrificing liquidity, financial stability or monetary sovereignty.
Stablecoins currently lead in public-blockchain adoption, while tokenized deposits are gaining institutional momentum and CBDCs remain central to government experimentation. Rather than replacing one another, all three could become different layers of a programmable global financial system.
Also Read: G20 Links Stablecoin Policy to Global Payments Modernization
1. What is the difference between stablecoins, tokenized deposits and CBDCs?
Stablecoins are privately issued digital tokens; tokenized deposits remain liabilities of commercial banks, and CBDCs are direct liabilities of central banks. Each model serves a different role in digital finance.
2. How large is the stablecoin market?
According to CoinMarketCap data cited in the article, global stablecoin market capitalization stands at around USD 314 billion. Stablecoins are widely used for trading, DeFi and cross-border transfers.
3. What are tokenized bank deposits?
Tokenized deposits are conventional commercial-bank deposits represented on programmable infrastructure. They can support faster settlement, automated compliance and digital transactions while keeping banks inside the financial system.
4. What did Project Agorá demonstrate?
Project Agorá tested approximately CHF 800,000 in real-value cross-border payments across 17 scenarios. Average settlement took around 80 seconds using tokenized deposits and central bank reserves.
5. How widely are central banks exploring CBDCs?
A BIS survey found that 91% of 93 central banks surveyed were exploring retail CBDCs, wholesale CBDCs or both. Europe is targeting potential technical readiness for a digital euro by 2029.