Money is changing. Not in the distant future, but right now. More than $280 billion in stablecoins are already in circulation, with $20–30 billion traded daily on blockchain networks. That means digital currencies are already competing with major payment networks in transaction volume.
This shift is not about one format replacing another. It is about choice. Three distinct forms are emerging – stablecoins, tokenised deposits, and central bank digital currencies (“CBDCs”). Each serves different needs, and together they are creating a financial infrastructure that operates 24/7, settles in seconds, and costs a fraction of traditional systems.
Stablecoins
Stablecoins are pegged to traditional currencies but move on blockchain rails. Their appeal is clear: speed, lower costs, and accessibility. Firms using stablecoins for cross-border payments report savings of up to 60% (TransFi, 2025), with transfers that settle in minutes instead of days.
Consider a supplier payment from Brazil to Nigeria on a Sunday evening. Instead of waiting for correspondent banks to reopen on Monday and paying high FX fees, the payment can now clear in minutes at minimal cost. For many corporates, that speed and efficiency is transformative.
Programmability adds another dimension. Smart contracts can enable automatic insurance payouts triggered by data, trade finance that releases funds on proof of delivery, or treasury systems that split revenue instantly upon receipt. These are functions that simply cannot exist with traditional payment methods.
Stablecoins also play a role in emerging markets, where they act as a hedge against inflation and enable financial inclusion. In countries such as Turkey, Argentina, and Nigeria, they are already helping individuals and businesses access dollar-backed value through a mobile phone. With 1.4 billion people globally still unbanked, the potential impact is significant.
Yet not all stablecoins are equal. The collapse of TerraUSD showed how quickly confidence can evaporate when reserves are opaque or poorly structured. The strongest footing today is with fully reserved tokens that publish audits, supported by frameworks like MiCA in the EU. In the United States, the GENIUS Act became law in July 2025. It will become effective either 18 months after enactment or 120 days after implementing rules are issued, with a grace period running to July 2028.
Tokenised deposits
If stablecoins represent the fintech-led model, tokenised deposits are the banking sector’s answer. These are digital versions of bank deposits, issued on permissioned networks, with the backing and oversight of regulated institutions.
JPMorgan’s JPM Coin is already being used to settle repo trades in minutes, replacing overnight settlement with near-instant delivery versus payment. Société Générale has issued a euro-denominated deposit token under France’s digital asset framework, providing corporates with regulated, on-chain settlement.
For treasurers, the advantage lies in combining blockchain speed with bank security. Transactions can be reversed if needed, access can be restored, and funds remain within the deposit insurance perimeter. The trade-off is that these tokens operate in closed systems, limited to clients of the issuing bank or consortium. The next challenge will be achieving interoperability across banks so that deposit tokens can scale globally.
Central bank digital currencies
CBDCs are issued directly by central banks and carry the same guarantee as physical cash. By 2025, 11 countries had launched a CBDC, while more than 100 others were exploring pilots. China’s e-CNY already has over 260 million wallets downloaded, and the European Central Bank is advancing its work on a digital euro.
The rationale varies: improving domestic payment systems, broadening financial inclusion, preserving monetary sovereignty, or streamlining cross-border settlements. A CBDC could, for example, allow instant payments between two countries’ currencies without correspondent banks in the middle.
Yet questions remain. Privacy, the risk of bank disintermediation, and the challenge of running national-scale digital cash systems are reasons why most central banks are moving carefully.
Three paths, one destination
Rather than competing, stablecoins, tokenised deposits, and CBDCs are likely to coexist. A digital wallet of the near future may contain all three: USDC stablecoins for global commerce, a deposit token from a commercial bank for corporate treasury, and a CBDC for domestic payments. Ideally, users will not even need to decide which to use, as the system will select the most efficient rail automatically.
For financial professionals, the opportunity lies in preparing now. Institutions that engage early are already reporting measurable benefits from cost savings and faster settlement to improved access to global markets.
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