Banks and financial institutions are exploring tokenized bank deposits, but stablecoins are predicted to overshadow this technology. Stablecoins, backed 1:1 by reserves, are more secure and versatile compared to tokenized deposits with limited functionality. The RWA sector is projected to reach $2 trillion by 2028. Source: RWA.XYZ.

Tokenized bank deposits face competition from yield-bearing stablecoins, which may share yield with customers. The banking lobby opposes this as it threatens their market share. With low savings account yields, customers find higher yields attractive. Resistance from the banking lobby has drawn criticism for protecting their interests over customers. Source: Cointelegraph.

Read more at Cointelegraph: Tokenized Bank Deposits Are Inferior to Stablecoins: Professor