Banks look to deposit tokens for blockchain-based payments

Banks are exploring the introduction of deposit tokens as a method to transfer funds to blockchain-based payment and settlement systems, according to a report from real-world asset data platform RWA.io, cited by Cointelegraph. The report analyzed that deposit tokens are emerging as a key component of on-chain cash infrastructure, alongside stablecoins and central bank digital currencies (CBDCs). The report noted a growing trend of related experiments, particularly in Europe. In January, Lloyds Banking Group and Akas completed the UK's first blockchain transaction using deposit tokens on the Canton Network. Additionally, UK Finance is conducting pilot projects through the middle of this year on applications including personal payments, mortgage adjustments, and digital asset settlement.