💵 A new approach to tokenized fiat is emerging—distinct from both CBDCs and stablecoins.
Some organizations are developing products that let customers lock funds in their bank account and withdraw them as blockchain-based tokens. To unlock the cash again, you simply deposit the tokens back.
At first glance, this looks similar to stablecoins. But here, custody of the reserves sits with the bank itself, not a private company like Tether—arguably making the system safer and more reliable.