Every Bank Should Tokenize Deposits Ft. Andrew Huang & Bhaji Illuminati

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Sep 1, 2025

In this discussion, Andrew Huang, founder of Conduit, and Bhaji Illuminati, CEO of Centrifuge, dive into the world of tokenized deposits. They explore the intriguing debate between tokenized deposits and stablecoins in banking. Regulatory challenges and privacy issues take center stage, revealing complexities for on-chain bank deposits. Bhaji highlights Cenrifuge's strides in tokenizing real-world assets since 2017, while Andrew shares insights on the future of institutional adoption in DeFi, ensuring a blend of traditional finance with innovative blockchain solutions.

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INSIGHT

Tokenized Deposits Complement Stablecoins

Tokenized deposits coexist with stablecoins and are different kinds of tokens backed by different assets.
Banks can mint on-chain tokens that represent internal deposits while preserving their balance-sheet functions.

INSIGHT

Banks Bring Durable Liquidity On-Chain

On-chain bank deposits expand sustainable liquidity sources for blockchains beyond speculative capital.
Preserving privacy and regulatory compliance is the biggest engineering challenge for banks moving deposits on-chain.

ADVICE

Start With Firewalled Institutional Use Cases

Design tokenized deposit systems as gradual, firewalled steps that serve institutional clients first.
Use semi-closed loop models so corporates can swap on-chain deposits atomically for stablecoins while preserving bank relationships.

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On Ep. 46 of Tokenized, Simon Taylor, Head of Content & Strategy @ Sardine, and Cuy Sheffield, Head of Crypto @ Visa, are joined by Andrew Huang, Founder @ Conduit and Bhaji Illuminati, CEO @ Centrifuge to discuss tokenized deposits vs stablecoins in banking, regulatory considerations for tokenized deposits and more!

Timestamps:

00:00 Introduction
01:38 Centrifuge's role in tokenizing real world assets since 2017
04:43 Debate on tokenized deposits vs stablecoins in banking
09:41 Privacy and compliance challenges for on-chain bank deposits
13:44 Regulatory considerations for tokenized deposits and systemic risk
23:34 Aave's RWA Market Horizon for on-chain collateralized lending
27:20 Institutional adoption of tokenized real world assets in DeFi
34:09 New solutions for verifying stablecoin issuers and preventing fraud
41:56 Growth of stablecoin-linked cards and global payment infrastructure
45:07 White-label stablecoin issuance and interoperability between chains

Tokenized is sponsored by Visa

A world leader in digital payments, Visa is bridging the gap between traditional financial institutions and innovative blockchain networks, helping players in the payments ecosystem navigate the ever-evolving world of tokenized fiat currencies with confidence and ease. Learn more at visa.com/crypto.

Tokenized is presented by Bridge, a Stripe company.

Just like the internet made information global, stablecoins are making money global. And Bridge, a Stripe company, is the infrastructure powering that shift. Built for speed, scale, and simplicity, Bridge helps businesses send, store, convert, and spend stablecoins instantly, all without borders or having to navigate the complexities of crypto. Learn more at bridge.xyz

Tokenized is also presented by Centrifuge

With over $1 billion in total value locked, Centrifuge works with major institutional partners to tokenize and distribute their funds — and with capital allocators onchain to invest and manage yield. Through every crypto cycle, Centrifuge has been building — and today, it’s the market leader in tokenizing real-world assets. Learn more at centrifuge.io

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We’d also like to remind you that the views or opinions of our contributors today are their own and do not necessarily reflect those of the companies they are representing. Nothing we say should be taken as tax, financial, investment or legal advice, do your own research!

Music by Henry McLean