EBA finds tokenized deposits similar to traditional ones: The European Banking Authority confirms that tokenized deposits closely resemble traditional deposits regarding regulatory expectations, calling for a review of existing regulations to ensure they address this new financial landscape.
Limited market activity for tokenized deposits exists: Currently, minimal market activity around tokenized deposits exists, with only 17% of EU banks considering them in the next two years. Their benefits include enhanced programmability and efficiency in financial settlements.
Need to differentiate between stablecoins and deposits: The report stresses the importance of distinguishing between electronic money tokens (stablecoins) and tokenized deposits for regulatory compliance, as they differ in functionality and transfer mechanisms despite using similar technologies.