- Corporate treasuries are now using tokenized deposits to seamlessly move into higher-yielding tokenized money market funds, as demonstrated by a collaboration involving Ant International, Crédit Agricole, CACEIS, and Amundi.
- A new whitepaper proposes a hybrid model where tokenized deposits and stablecoins work together, using a stablecoin like Custodia Bank‘s Avit to bridge payments to wallets outside a banking network.
- This integration solves the limited reach of tokenized deposits while addressing concerns about the “singleness of money” with stablecoins, pointing toward more practical multi-bank solutions.
Last week, two significant developments in the tokenized deposit space highlighted a major shift in how corporate cash is managed globally. The innovations originated from financial institutions like Crédit Agricole and Custodia Bank, signaling a move toward blockchain-powered treasury operations.
Consequently, Ant International leveraged its Whale platform and tokenized deposits to enable corporate clients to sweep pooled liquidity into tokenized money market funds from Amundi. This allows for 24/7 movement from low-yielding cash into higher-earning assets, a function previously explored by institutions like BNY and Goldman.
However, tokenized deposits have a key drawback: they can only be sent to other participants within the same banking network. Meanwhile, stablecoins offer greater openness by transferring to any compatible wallet. The new Hazel Network whitepaper tackles this interoperability challenge directly.
The proposed solution elegantly converts a tokenized deposit to a stablecoin when a payment is sent outside the network, and vice-versa. This hybrid model, explained in the whitepaper, could make the system more practical for users. It simultaneously solves the reach problem for deposits and the singleness-of-money issue for stablecoins.
Ultimately, this points toward a future where tokenized deposit networks could be bridged by multi-bank stablecoins. Examples include Europe’s Qivalis, the proposed Zelle stablecoin for remittances, or Japan’s “3 Mega SC” from MUFG, SMBC, and Mizuho.
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