Banks Target Q4 Launch for Tokenized Deposit Network

Core Insights - A tokenized deposit network is being developed by five banks and a blockchain platform led by Gene Ludwig, expected to launch in Q4 [1][2] - The network will initially facilitate money movement among the banks' customers, with potential future connections to other networks [3] Group 1: Project Overview - The participating banks include First Horizon, Huntington Bancshares, KeyCorp, M&T Bank, and Old National Bancorp [2] - A pilot program for the tokenized deposit network is scheduled for Q3 [2] Group 2: Objectives and Benefits - The banks aim to offer new products and services, enable always-on settlement, and facilitate fast, frictionless money movement [7] - Ludwig emphasized that innovation in digital assets should enhance the regulated banking system, with tokenized deposits modernizing payments while maintaining insured deposits [8] Group 3: Market Context - Tokenized deposits are expected to surpass stablecoins as the preferred on-chain dollar for institutional and wholesale money [9] - BNY's strategy to tokenize deposits aims to extend trusted bank deposits onto digital platforms, enhancing operational speed across various financial activities [10]