Stablecoins Lead Tokenized Deposits in Security and Integration Capabilities
- Experts argue stablecoins outperform tokenized deposits in safety, liquidity, and cross-chain interoperability, per Columbia Business School and Markets.com analyses. - Tokenized real-world assets (RWA) market could hit $2 trillion by 2028, driven by stablecoin liquidity and DeFi integration, Standard Chartered forecasts. - Banks resist yield-bearing stablecoins fearing market share loss, while U.S. regulatory clarity remains critical for sector growth, reports note. - Institutional adoption accelerates
The competition between stablecoins and tokenized bank deposits is heating up, with many analysts asserting that stablecoins have a clear advantage in terms of security, usability, and widespread use. Omid Malekan, who teaches at Columbia Business School, argues that stablecoins backed one-to-one by cash or short-term assets are fundamentally more secure than tokenized deposits issued by banks using fractional reserves. “Stablecoins are naturally better equipped to handle liquidity challenges,” Malekan explained, highlighting that tokenized deposits are often limited by KYC requirements and lack broad compatibility, as noted in a
Stablecoins also excel in composability, allowing them to be easily integrated throughout the crypto landscape and within decentralized applications (dApps). In contrast to tokenized deposits, which are typically restricted to closed systems, stablecoins support international payments, yield-generating protocols, and interactions with DeFi platforms, according to a
At the same time, the market for tokenized real-world assets (RWA) is expected to reach $2 trillion by 2028, based on a
Stablecoins are at the heart of this evolution. With a total market value surpassing $300 billion, they serve as the main source of liquidity for tokenized assets, streamlining on-chain transactions and yield opportunities, according to Standard Chartered. Tether’s
Yet, there are still hurdles to overcome. Banks and other financial players are pushing back against stablecoins that pay interest, concerned about losing their share of the market. The banking sector has actively opposed yield-generating stablecoins, which could threaten traditional interest-based business models, as highlighted in the Markets.com article. Regulatory ambiguity is another significant barrier. Standard Chartered cautions that without comprehensive U.S. crypto regulations before the 2026 midterms, progress could be delayed, the report adds.
Even so, institutional interest is growing rapidly. Coinbase’s recent $2 billion offer for stablecoin infrastructure provider BVNK highlights the strategic importance of the sector, while BlackRock and other major players are exploring funds backed by stablecoins, according to a
As the financial industry adapts to these changes, the decision between stablecoins and tokenized deposits will depend on practical use and regulatory developments. At present, stablecoins seem to be leading, thanks to their flexibility, liquidity, and growing institutional support.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ethereum News Today: Ethereum Faces a Pivotal Moment as Sellers Stand Firm While Bulls Anticipate a Rally to $16K by 2025
- Ethereum dropped to $3,000 in 2025 but rebounded to $3,324, supported by technical levels and institutional accumulation, including BitMine’s $300M ETH purchase. - ETF redemptions and Bitcoin’s weakness (0.86 correlation) worsened market pressure, with $1.78B in crypto liquidations and $135.7M Ethereum ETF outflows reported. - Analysts remain bullish, projecting a potential $16,000 rebound by 2025 if ETH/BTC ratio normalizes and regulatory clarity boosts stablecoin demand, despite 200-day EMA resistance

Bitcoin News Update: MicroStrategy's Bold Bitcoin Strategy Hits Key Milestone as mNAV Approaches Parity
- MicroStrategy's mNAV ratio nears 1.04, signaling a potential inflection point in its Bitcoin-centric strategy as holdings reach 641,205 BTC valued at $69B. - CEO Phong Le explores Bitcoin derivatives to maintain dividends amid equity dilution risks, as Bitcoin's price dips below $108,000 for the first time since 2018. - Market volatility and U.S.-China tensions, coupled with $789M in Bitcoin ETF outflows, highlight risks for MicroStrategy's single-asset exposure and leverage. - The firm raised $19.8B in
XRP News Today: XRP Faces Impending Death Cross as Bearish Pressure Outpaces Retail Interest
- XRP faces prolonged bearish pressure as technical indicators, weak retail demand, and liquidity concerns align against a rebound. - Futures open interest dropped 61% to $3.54B since October, while RSI near 41 and MACD signals reinforce downward momentum. - Ripple's monthly 1B XRP unlocks raise short-term selling risks, though institutional ODL adoption processed $1.3T in cross-border payments. - Death cross threat (50-day SMA approaching 200-day SMA) and macroeconomic uncertainties deepen bearish sentime

DASH surges 42.76% in a week: Q3 revenue surpasses expectations, but EPS falls short; 2026 investment strategy sparks after-hours decline
- DASH surged 42.76% in 7 days despite a 16% post-earnings selloff on Nov. 5, 2025. - Q3 revenue beat estimates ($3.45B vs. $3.36B), but EPS fell below $0.68–$0.69 consensus. - 2026 spending plans and Deliveroo acquisition costs triggered profit concerns, offsetting strong 13.8% net margin. - Analysts focus on capital allocation and $5B buyback potential amid near-term volatility from reinvestment emphasis.