Stablecoins vs Tokenized Deposits

Comparing the balance sheet structures, credit risks, and clearing architectures of fiat stablecoins and tokenized commercial bank deposits.

Written by Joan Lyczak · Founder & Research Lead, DCM Core Institute
Feature Fiat Stablecoins (e.g., USDC, EURC) Tokenized Deposits
Liability Type Prepaid card / e-money issuer liability Direct commercial bank liability (deposit)
Reserve Backing 100% matched liquid cash & treasuries in escrow Fractional reserve banking (loans, central bank reserves)
Credit Risk Custodian risk (isolated to reserve bank failure) Bank credit risk (offset by deposit insurance)
Interbank Settlement Not required (transferred as native tokens) Requires interbank clearing (RTGS/TARGET2)
Regulatory Framework MiCA (EMT) in Europe, state money transmitters in US Traditional banking license & deposit rules