Tokenized Deposits vs Payment Stablecoins: The Two-Track Race for Institutional Money
The digital asset market is currently bifurcated by the regulatory architecture of the GENIUS Act, which has effectively forced a choice between bank-native tokenized deposits and yield-optimized stablecoin wrappers. At the center of this divide is Section 4(a)(11), which explicitly prohibits stablecoin issuers from paying interest or yield to holders. Tokenized deposits function as bank…