- Tokenized deposits lack the flexibility of stablecoins
- Stablecoins already dominate real-world usage
- Trust and accessibility give stablecoins the edge
Tokenized Deposits vs. Stablecoins: What’s the Difference?
As blockchain adoption grows in the financial world, there’s increasing debate around the best tools for mainstream digital payments. In a recent opinion, Colombian finance expert Omid Malekan argued that tokenized bank deposits are unlikely to outperform stablecoins when it comes to real-world usage.
While both aim to bring traditional finance onto the blockchain, they differ fundamentally. Tokenized deposits are digital versions of fiat held in banks, issued and controlled by the banking system. In contrast, stablecoins are crypto-native assets backed by fiat or assets, already widely used across decentralized finance ( DeFi ), remittances, and cross-border transactions.
Stablecoins Win on Utility and Adoption
According to Malekan, stablecoins already dominate real-world use cases—especially in markets where banking infrastructure is weak or access is limited. He notes that users and developers alike prefer stablecoins due to their open access, instant settlement, and compatibility with most crypto platforms.
Tokenized deposits, on the other hand, are tied to legacy banking systems, meaning they come with restrictions, regulations, and limited interoperability. They may work well within a country’s borders or among large banks, but for global and decentralized finance, they fall short.
Malekan also raises concerns about trust and control. Users must trust that banks won’t restrict access to their tokenized deposits—something that goes against the decentralized ethos of crypto.
Are Tokenized Deposits Still Useful?
While Malekan is skeptical, tokenized deposits might still play a role in regulated environments or for interbank settlement. Central banks and financial institutions may prefer them over stablecoins for compliance and risk management.
However, when it comes to real-world users—especially those seeking speed, low cost, and global access—stablecoins remain the clear winner. Malekan’s view reinforces the idea that open systems will continue to outpace closed, institutional ones in the evolution of digital money.
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