Fed Research Compares Wholesale CBDC Settlement With Tokenized Deposits
A Federal Reserve research paper compares wholesale central bank digital currency (CBDC) settlement with tokenized commercial bank deposits. It is research only and does not signal a Fed launch plan or endorsement of crypto assets. Wholesale CBDCs are designed for institutions and market infrastructure, not retail users. They could improve interbank settlement, securities settlement, liquidity management, and collateral movement. Tokenized deposits keep bank money as commercial bank liabilities on digital rails, preserving the bank role while enabling faster and more programmable transfers. The central issue is whether tokenized deposits can match the efficiency, trust, and settlement finality of wholesale central bank money. Any system must also address legal finality, resilience, privacy, compliance, cyber risk, operational control, and central bank oversight. The paper reflects a broader shift in financial infrastructure research: future digital money systems may include wholesale CBDCs, tokenized deposits, stablecoins, and traditional payment rails operating alongside each other.
