The Federal Reserve Bank of Kansas City published a research briefing on Friday examining how tokenized deposits, which remain commercial bank deposits but can move on distributed-ledger infrastructure outside conventional banking schedules, could affect bank liquidity. Demand appears to come mainly from multinational corporate treasurers seeking always-on liquidity management, international supplier payments and the cash side of tokenized securities transactions. Banks will need to prepare for “faster, round-the-clock, and less consistent deposit outflows,” and tokenization could change deposit stickiness and the line between operational and nonoperational balances. Separately, The Clearing House is developing a tokenized deposit network targeted for availability in the first half of 2027, which would let a treasurer transfer deposits between participating banks with a single instruction.
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