Tokenized Commercial Bank Money

Definition ∞ Tokenized commercial bank money refers to digital representations of fiat currency held in commercial bank accounts, issued as tokens on a distributed ledger. These tokens represent a claim on actual deposits held by a regulated financial institution. They combine the programmability of blockchain with the stability of traditional money.
Context ∞ The emergence of tokenized commercial bank money is a significant development in the digital finance landscape, bridging traditional banking with blockchain technology. It offers a potential alternative to stablecoins and central bank digital currencies, providing a regulated, programmable form of digital currency. This innovation could revolutionize payment systems and facilitate new financial products within the digital asset ecosystem.