The European Banking Authority (EBA) published a report on tokenized deposits, considering them fundamentally the same as conventional deposits from a regulatory perspective. However, it plans to analyze current regulations to see whether they are adequate. There’s no urgency because of the limited activity so far. A March survey identified just two projects, which it briefly described but didn’t identify.
One of the projects was definitely Germany’s Commercial Bank Money Tokens (CBMT) as it mentioned five banks and five corporates. The other may have been Euroclear’s D-FMI as it was purely for securities settlement and mentioned UTXO which is used by R3’s Corda enterprise blockchain. According to the EBA survey, 17% of EU banks plan to engage with tokenized deposits within the next two years.
The paper explored the benefits of tokenized deposits such as programmability, efficiencies and atomic settlement.
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