The race to deploy tokenised deposits and stablecoins is forcing banks to rethink settlement, permissions and trust as money moves across increasingly connected networks.
Digital money is forcing banks to think far beyond whether to issue a token, as the industry weighs how new forms of value should move across its systems and where institutional control still matters. Jon Eisenstein, senior vice president and global head of digital assets and embedded finance at FIS, told PYMNTS that three forces are driving the shift: the convergence of decentralised finance and traditional banking, changing regulation and easier access to the infrastructure that connects the two.
That convergence is already changing how banks think about distribution and product design. Eisenstein said customers no longer need to step outside their existing banking relationships to reach crypto or decentralised finance services, because the surrounding infrastructure has become more accessible and better integrated. He argued that banks now face a choice between instruments that work best inside their own networks and those that can travel more widely across different systems.
In that framework, tokenised deposits and stablecoins play different roles. Tokenised deposits, whether issued by a single bank or across a network of institutions, draw their value from the backing of regulated deposits and the trust associated with banking relationships. Stablecoins, by contrast, are better suited to wider reach across multiple networks, which is why firms including FIS have also been working on stablecoin support as an additional payment rail alongside existing real-time systems. At the same time, major US banks are building a shared tokenised deposit network that could launch in the first half of 2027, underscoring how quickly the competitive landscape is shifting.
The move from experimentation to production also raises operational questions that go well beyond payments. Real-time settlement can reduce the need for funding windows and reconciliation, but it also means money can leave instantly, placing more pressure on controls, permissions and recovery procedures. Eisenstein said banks do not necessarily need blockchain specialists so much as people who understand real-time finality and settlement, while AI agents may soon need the authority to initiate payments on behalf of consumers or treasury teams. The broader warning is that trust, long a banking advantage, is not guaranteed to stay put as fintechs and digital-asset firms seek licences, buy banks and move closer to regulated finance.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
