What is the Context of Commercial Bank Money?

The discussion surrounding Commercial Bank Money often relates to the emergence of central bank digital currencies (CBDCs) and stablecoins, which pose questions about its future role. Debates address how these new digital forms of money might alter payment systems, financial stability, and the overall structure of the banking sector. Regulatory authorities are examining potential implications for monetary policy and consumer protection.

Commercial Bank Money

Definition

Commercial Bank Money represents the digital liabilities of commercial banks to their customers. This form of money is held in deposit accounts and is used for most electronic transactions. It constitutes the largest portion of the money supply in modern economies, distinct from central bank money or physical currency.

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∞Financial Infrastructure

∞Distributed Ledger Technology

∞Instant Settlement

BNY Mellon Explores Tokenized Deposits to Modernize $2.5 Trillion Payment Network

This strategic exploration of tokenized deposits is architected to eliminate legacy settlement friction, enabling 24/7, near-instant liquidity for a $2.5 trillion daily payment flow.

∞Cross-Border Settlement

∞Capital Markets

∞Real-Time Liquidity

J.P. Morgan Launches Deposit Token on Public Ethereum Layer-2

Tokenizing commercial bank deposits on a public chain enables institutional clients to achieve near-instant, 24/7 on-chain settlement, dramatically enhancing capital efficiency.

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∞Shared Ledger

∞DLT Technology

∞Capital Efficiency

BNY Mellon Explores Tokenized Deposits for $2.5 Trillion Daily Payments

Implementing tokenized deposits directly addresses legacy payment constraints, enabling 24/7, instant settlement to optimize the $2.5T daily flow and free up trapped working capital.

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∞Commercial Bank Money

∞Real-Time Settlement

∞Distributed Ledger

European Banking Consortium Commits to Launching MiCA-Compliant Euro Stablecoin

This consortium-led stablecoin initiative strategically captures European digital value creation, optimizing capital efficiency and ensuring regulatory compliance for cross-border payments.

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∞Global Clearing

∞Treasury Services

∞Payment Modernization

BNY Mellon Pilots Tokenized Deposits to Modernize Global Payment Infrastructure

The bank is leveraging tokenized deposits to migrate a portion of its $2.5 trillion daily payment volume onto DLT for continuous, real-time settlement.