Increasingly tokenized deposits or deposit tokens are viewed as an alternative to stablecoins or a retail CBDC, preserving the two tier banking system. Payments with tokenized deposits can be functionally more complex compared to stablecoins and CBDC. When someone pays using a bank token, there is additionally a movement in conventional money.

Some countries, such as Korea and Brazil, are additionally exploring wholesale CBDCs as an interbank settlement asset. Banks are exploring various use cases, ranging from wholesale or interbank use to corporate applications and consumer payments.

Ledger Insights Research has published a report on tokenized deposits, bank stablecoins and DLT payments, providing a map and description of more than 70 projects. It also explores design criteria in depth.