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What are stablecoins and tokenized deposits? How can they generate insane margins? And should community banks think about using them? I recently got to sit down with Jay Leal from Vantage Bank to dissect all of this, and I'm excited to share the full conversation with you below.
Stablecoins are digital tokens backed one-to-one by reserves (cash, treasuries, assets) that sit outside the banking system.
Tokenized deposits are FDIC insured bank deposits on a distributed ledger. When you deposit $100, those are your actual dollars - just recorded on a modern ledger that enables real-time movement and programmability.
We are moving toward a world where more people work on projects, milestones, or hourly rates instead of fixed salaries. The gig economy started this shift, and AI is speeding it up. People expect payment when the work is done, not a month later on a payroll cycle. The infrastructure for instant, project-based payments already exists. As new technology reshapes the economic model, these systems become critical infrastructure.
Money is leaving the banking system and moving to private entities that don't have the same compliance and governance requirements as banks. For them, regulatory oversight is simply overhead and cost. Jay saw stablecoins as a potential threat to their deposit base and decided to act.
Vantage Bank ran a proof of concept with a logistics company to test tokenized deposits for international wire transfers. What they found was a ginormous saving from the usual $7 for international transaction costs down to pennies. Banks worry about giving up margins when they adopt innovative payment rails, but actually their margins improve because you can facilitate more payments faster.
Smart contracts enable programmable money that transfers automatically when specific conditions are met. For example, once a logistics company completes a delivery, usually someone creates an invoice, accounts payable processes it, and payment goes through legacy rails which could take days - or they send a check! Using smart contracts, payment releases automatically as soon as the freight reaches the warehouse or hits a milestone.
Watch the full video below:
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Subscribe to our blog to hear directly from the people shaping the future of risk and regulation.
For more information on how Cable can automate testing of regulatory controls and dynamic risk assessments, contact Cable today for a demo.
A Conversation about Open Banking, with Alex Johnson
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A Conversation about AI in Banking, with Maya MikhailovWhat are stablecoins and tokenized deposits? How can they generate insane margins? And should community banks think about using them? I recently got to sit down with Jay Leal from Vantage Bank to dissect all of this, and I'm excited to share the full conversation with you below.
Stablecoins are digital tokens backed one-to-one by reserves (cash, treasuries, assets) that sit outside the banking system.
Tokenized deposits are FDIC insured bank deposits on a distributed ledger. When you deposit $100, those are your actual dollars - just recorded on a modern ledger that enables real-time movement and programmability.
We are moving toward a world where more people work on projects, milestones, or hourly rates instead of fixed salaries. The gig economy started this shift, and AI is speeding it up. People expect payment when the work is done, not a month later on a payroll cycle. The infrastructure for instant, project-based payments already exists. As new technology reshapes the economic model, these systems become critical infrastructure.
Money is leaving the banking system and moving to private entities that don't have the same compliance and governance requirements as banks. For them, regulatory oversight is simply overhead and cost. Jay saw stablecoins as a potential threat to their deposit base and decided to act.
Vantage Bank ran a proof of concept with a logistics company to test tokenized deposits for international wire transfers. What they found was a ginormous saving from the usual $7 for international transaction costs down to pennies. Banks worry about giving up margins when they adopt innovative payment rails, but actually their margins improve because you can facilitate more payments faster.
Smart contracts enable programmable money that transfers automatically when specific conditions are met. For example, once a logistics company completes a delivery, usually someone creates an invoice, accounts payable processes it, and payment goes through legacy rails which could take days - or they send a check! Using smart contracts, payment releases automatically as soon as the freight reaches the warehouse or hits a milestone.
Watch the full video below:
Want to stay ahead of what’s next in compliance?
Subscribe to our blog to hear directly from the people shaping the future of risk and regulation.
For more information on how Cable can automate testing of regulatory controls and dynamic risk assessments, contact Cable today for a demo.
