Definition ∞ Tokenized Commercial Bank refers to a traditional banking institution that issues digital tokens representing claims on its assets or services. This concept bridges conventional finance with blockchain technology, allowing for more efficient and transparent financial operations. Such banks might issue stablecoins, tokenize deposits, or use distributed ledgers for interbank settlements. It represents an evolution in how banking services are delivered and managed.
Context ∞ The state of tokenized commercial banks is characterized by pilot programs and regulatory sandboxes exploring the viability of blockchain integration within established financial institutions. A key debate involves navigating existing banking regulations while leveraging the benefits of tokenization. Critical future developments include the widespread issuance of tokenized deposits and the establishment of common technical standards for digital asset interoperability across the banking sector.
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