Table of Contents
Researcher
\[ASA News] is a bi-weekly newsletter where we share the most important news related to stablecoin in Asia. (2026.02.17~03.01)*
Written by Moyed
1. [News] Huntington, M&T, and Mid-Sized Bank Consortium Building Blockchain-Based Deposit Token Platform
Source: Regional Banks Team Up for Tokenized Deposits
Five U.S. regional banks—Huntington Bancshares, First Horizon, M&T Bank, KeyCorp, and Old National Bank—are partnering with blockchain platform Cari Network to commercialize a tokenized deposit network by year-end. The plan calls for a minimum viable product (MVP) in March, a pilot in Q3, and full commercial rollout by year-end. Tokens issued on this network will offer speed and transferability comparable to stablecoins while retaining the legal status of traditional bank deposits and remaining eligible for FDIC insurance.
Initially, the platform will support money movement only among customers of participating banks, with plans to expand interoperability with other payment networks for 24/7 instant settlement. Cari Network is led by former U.S. Comptroller of the Currency Gene Ludwig, who stated: "Tokenized deposits, built on sound blockchain infrastructure, can modernize payments while keeping insured deposits at the core of economic activity."
This move reads as a strategic play by mid-sized banks to maintain competitiveness against global financial institutions and fintech. As stablecoin and digital asset players encroach on traditional banking territory with 24/7 payments and programmable money, regional banks are using tokenized deposits to defend their core deposit business while absorbing blockchain's technological advantages.
2. [Commentary] Tokenized Deposits vs. Stablecoins: Implications for Asia
Tokenized deposits and stablecoins may look similar as 'on-chain dollars,' but they are structurally entirely different financial products. Stablecoins follow a 'bearer instrument' model where the issuer holds reserve assets separately and circulates tokens—possession equals ownership, and issued funds are locked outside the banking system. Tokenized deposits, by contrast, are an 'account-based' model that remains on the bank's balance sheet. The bank controls the ledger, FDIC insurance applies, and banks can use the funds for lending and liquidity management. In short, stablecoins drain liquidity from the banking system, while tokenized deposits maintain liquidity while upgrading functionality.
In Asia, these two models are evolving differently based on each country's financial structure and regulatory philosophy. Japan is pursuing both tracks in parallel. The three megabanks' yen stablecoin is classified as an 'electronic payment instrument' under the Payment Services Act, while separately, DCJPY operates as a tokenized deposit model, with Japan Post Bank and others planning to use it for securities settlement in 2026. South Korea remains in early stages for both, but the Bank of Korea's recent move to restrict won-stablecoin issuance to licensed banks and require banks to hold at least 51% of any stablecoin issuer reads as a signal favoring a model closer to tokenized deposits.
The message from U.S. regional banks to Asia is clear: tokenized deposits are a pragmatic path for banks to defend against disintermediation in the blockchain era while still embracing innovation. If stablecoin issuance is dominated by non-bank entities, banks' deposit bases risk erosion, but tokenized deposits preserve the deposit franchise while adding 24/7 settlement, programmable money, and cross-border clearing capabilities. The caveat is that if tokenized deposits remain confined to closed interbank networks, they will struggle to match the openness and interoperability of stablecoins.
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