American Banker's Q2 digital asset index shows bank interest in tokenized deposits growing faster than stablecoin adoption, with multiple institutions advancing pilots or commercial deployments. Unlike stablecoins issued by non-bank entities, tokenized deposits carry bank charter backing and are subject to existing prudential regulation, making them a distinct product category.
For Armada's crypto repo desk, tokenized deposits represent a potential new collateral class from bank counterparties that sits between traditional cash and stablecoins in the credit quality spectrum. Whether they meet Armada's collateral eligibility criteria under the no-rehypothecation policy and Fireblocks custody framework would need explicit legal and operational review before any acceptance.