Federally chartered crypto bank Anchorage Digital has announced the rollout of infrastructure that enables banks to issue tokenized deposits, joining a growing movement by financial institutions to bring traditional bank money onto blockchain networks. According to reports from CoinDesk, the bank announced on Monday that its new platform will help banks offer round-the-clock payments and settlement services using blockchain technology without requiring replacement of their existing core banking systems.
The platform operates by creating blockchain-based representations of customer deposits while keeping the underlying funds within the bank's traditional deposit accounts. As reported by CoinDesk, Anchorage Digital will provide the blockchain infrastructure, wallet management and smart contract technology, while banks maintain customer relationships and custody of deposits. CEO Nathan McCauley explained that many banks are thinking about tokenized deposits and how to implement them, stating that the product works as a parallel layer alongside existing banking infrastructure rather than requiring migration to entirely new systems.
The launch comes as banks increasingly explore tokenized deposits as an alternative to stablecoins for moving money on blockchain rails. According to CoinDesk, there's a growing debate in financial markets about whether stablecoins or tokenized deposits will become the preferred method for money movement on blockchain networks. America's biggest banks, including JPMorgan, Citi and Bank of America, plan to build a shared, tokenized deposit network by the first half of 2027. Blockchain infrastructure firm BitGo is also working with ZKsync to build tokenized deposit infrastructure to bring banks onchain.
The platform addresses the need for faster payments and settlements in a financial system that still operates largely on business hours and batch processing. As reported by CoinDesk, the product is designed as a parallel layer that sits alongside existing banking infrastructure rather than requiring institutions to migrate to entirely new systems, a process that can take years and carry significant operational risks. This approach allows banks to offer 24/7 settlement capabilities without requiring core banking overhauls.
