Definition ∞ A Digital Deposit Token is a representation of a traditional currency deposit held at a regulated financial institution, issued as a token on a blockchain. These tokens are fully backed by corresponding fiat currency reserves, ensuring a one-to-one redemption value. They combine the programmability and efficiency of blockchain technology with the stability and regulatory oversight of conventional banking. This digital asset class aims to provide a stable medium of exchange within blockchain ecosystems.
Context ∞ News regarding digital deposit tokens often relates to discussions around stablecoin regulation and the potential for traditional banks to participate in decentralized finance. A key debate centers on how these tokens differ from other stablecoins, particularly concerning their regulatory treatment and the legal framework for their backing assets. Observing pilot programs and legislative proposals from central banks and financial regulators will provide important context for their future integration into global financial systems.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
