The global financial landscape is on the cusp of a significant transformation, driven by emerging forms of digital money. Stablecoins, Central Bank Digital Currencies (CBDCs), and tokenized deposits are rapidly gaining traction, positioning themselves as the foundational elements for a new era of instant, programmable, and always-on banking systems.
The Dawn of Always-On Banking
A recent Deutsche Bank report, titled Digital Money – a perspective on stablecoins, tokenised deposits, and CBDCs, underscores this shift. It emphasizes that financial systems are moving away from traditional models reliant on batch processing and strict cut-off times. Instead, digital money systems promise real-time transfers, automated payments, and continuous settlement capabilities, paving the way for a more efficient and responsive financial ecosystem.
Financial institutions and corporations worldwide are actively exploring blockchain-based payment solutions to enhance speed, transparency, and automation in their operations.
Stablecoins Lead the Charge
Stablecoins represent the fastest-growing segment of digital money, with their market capitalization surging from approximately US$50 billion in 2021 to over US$300 billion by April 2026. US dollar-backed stablecoins, such as USDT and USDC, currently dominate nearly 99% of this market.
Initially designed to support cryptocurrency trading, stablecoins are increasingly finding real-world applications. These include facilitating cross-border remittances, business-to-business transactions, international payouts, and providing access to dollar-denominated assets in economies grappling with high inflation.
While global stablecoin transaction volumes were estimated at US$62 trillion in 2025, real-economy payment activities accounted for a smaller, though significant, share of US$350–550 billion. Regulatory clarity is also accelerating their adoption. The United States enacted the GENIUS Act in July 2025, establishing formal rules for stablecoin issuers, including stringent reserve requirements. Europe's Markets in Crypto-Assets Regulation (MiCA) provides a harmonized framework across the EU, while Asian markets like Singapore, Hong Kong, and Japan are actively developing their own stablecoin regulations and pilot programs.
Tokenized Deposits: Blending Tradition with Innovation
Alongside stablecoins, banks are experimenting with tokenized deposits. These are blockchain-based representations of commercial bank deposits that maintain the structural integrity of traditional banking while enabling faster, programmable transactions. Initiatives like Partior, Project Agorá, and Swift's blockchain-ledger project are exploring how these deposits can modernize correspondent banking, automate treasury functions, and improve cross-border settlement efficiency.
Unlike many stablecoins, tokenized deposits often allow holders to earn interest in various jurisdictions, making them a potentially attractive option for banks and institutional clients seeking both innovation and traditional financial benefits.
CBDCs Gain Global Momentum
The Deutsche Bank report also notes that wholesale CBDCs, designed for institutional use, are progressing more rapidly globally than retail CBDCs intended for consumers. China's e-CNY project remains the most advanced example of a retail CBDC. In contrast, wholesale CBDCs are increasingly being explored for interbank settlement, tokenized securities, and broader cross-border financial infrastructure.
As digital money adoption expands globally, banks are expected to play a crucial role in guiding customers through the complexities and opportunities presented by stablecoins, tokenized deposits, and CBDCs, ensuring a smooth transition to this new era of instant digital banking.