TL;DR
- Quant says tokenized deposits are moving from individual bank projects to shared networks capable of connecting different financial institutions.
- The Clearing House will launch its tokenized deposit initiative in the first half of 2027, using blockchain infrastructure developed by Quant.
- Interoperability between networks and settlement through existing banking systems will be essential to expanding the use of tokenized deposits.
Quant highlighted that tokenized deposits are entering a new phase, with banks seeking to connect their blockchain infrastructures to transfer money between institutions, countries, and settlement systems.
In an analysis published by the company, Martin Hargreaves explained that issuing digital deposits within a single institution is already a well-established practice. The main challenge now is enabling these assets to move between different banking networks.
Unlike stablecoins, tokenized deposits are issued by regulated banks and backed directly by funds held on their balance sheets. This allows banks to maintain traditional banking relationships and operate under existing regulations.
The Clearing House Will Use Quant’s Infrastructure
One of the projects highlighted is The Clearing House’s On-Chain Money Initiative, which is scheduled to launch in the first half of 2027.
Quant will provide the initiative’s blockchain infrastructure, allowing each bank to manage its own issuance, wallet, and custody systems, connected through a shared permissioned network.
Tokenized deposits will be delivered once traditional money has been settled through RTP or CHIPS, two U.S. payment systems.
The project also plans to provide API access to certain external blockchains so they can use these settlement infrastructures.
Interoperability Between Banks Will Be the Next Challenge
According to Quant, there are currently between 10 and 15 tokenized deposit systems that have reached the pilot stage or progressed beyond it.
These include Great British Tokenised Deposits, which uses the Bank of England’s RTGS system, and Project Agora, led by the Bank for International Settlements.
The company believes connecting these networks will allow banks to develop cross-border payments and simultaneous settlement transactions involving different currencies.
Hargreaves also warned that the biggest obstacles are not necessarily technological. Coordination between banking teams, risk controls, and accounting models can complicate implementation.
Treasury management, international payments, and securities settlement are among the main applications banks are seeking to develop through these networks.
