TOKENIZED DEPOSITS VS STABLECOINS

Summary from the TLDR Crypto newsletter

The Tokenized deposits vs. stablecoins debate is a false fight as banks create credit, stablecoins move money, and the future system needs both. Tokenized deposits keep corporate funds inside banks so they can borrow cheaply against them, while stablecoins are fully reserved, cash-like dollars that can move permissionlessly, 24/7, across borders. The real unlock is on-chain interoperability. Instant swaps between bank deposits and stablecoins so a company can tap cheap bank credit and pay anyone globally in seconds. In this framing, deposits = regulated credit rails, and stablecoins = universal settlement rails.