Tokenized deposits
Bank deposits recorded as digital tokens on a blockchain, so they can move between accounts at any hour while remaining claims on the issuing bank.
What tokenized deposits are
Tokenized deposits, also called deposit tokens, are ordinary bank deposits represented as tokens on a blockchain. The bank issues them to its customers, and each token is a claim on the bank, just like a balance in an account. Unlike a stablecoin, the money stays a deposit on the bank's balance sheet.
How it works
A customer converts part of an account balance into tokens, which move on the bank's chosen blockchain to other permitted holders at any hour. The GENIUS Act excludes deposits, including tokenized ones, from its stablecoin rules, so banking law still applies.
- 01 · ISSUE The bank converts a customer's deposit balance into tokens on its blockchain.
- 02 · TRANSFER Tokens move between permitted holders at any hour, including weekends.
- 03 · REDEEM Tokens convert back into a regular deposit balance at the bank.
| Feature | Tokenized deposit | Payment stablecoin under the GENIUS Act |
|---|---|---|
| Issuer | A bank | A permitted stablecoin issuer |
| Legal status | A deposit at the bank | Not a deposit |
| Interest | Banks may pay it | Issuers may not pay it |
| Backing | The bank's balance sheet and capital | 1:1 reserves in cash, deposits and short-term Treasuries |
In April 2026, the FDIC proposed confirming that deposit insurance does not depend on the technology used to record a deposit.
When businesses use it
- Treasury transfers between a company's accounts outside wire hours
- Settling payments between clients of the same bank or bank network
- Programmable payments, such as releasing funds when set conditions are met
- Moving collateral or margin when settlement is needed on weekends
Cross River combines fiat rails, stablecoin payments and crypto-native products on one platform, with 24/7/365 settlement between accounts in its partner network. Stablecoins are not deposits and are not FDIC insured. See onchain finance at Cross River.