Most bankers I speak to understand that tokenized money is important, but they aren’t sure what to do about it. That’s understandable, given the pain points currently standing in the way: Many banks find that they don’t have the scale to act alone; there are unsolved issues related to convertibility, fungibility and liquidity; “know your customer” and anti-money laundering challenges and so on. But there are also potential advantages to things like tokenized deposits: They provide stable value, improve capital efficiency, offer regulatory certainty, are recorded as “deposits” on the liability side of the balance sheet and enable credit intermediation. Across the industry, work is underway to determine how tokenized money could support faster settlement, better liquidity management and new treasury services for customers. You’ve probably seen recent announcements about banks, consortia and others launching initiatives in this space. These are important developments, but the point is not that every bank needs to build its own solution. Rather, banks of all sizes need a path to participate safely and at scale, and ABA, as well as state bankers associations and other industry partners, are focused on helping chart that path. ABA’s Office of Innovation has been at the leading edge of efforts to better understand how tokenization can benefit the banking industry from a strategic perspective. You’ll be hearing much more from us in the coming days on our work to help ABA members chart a path forward. America’s banks have always been pioneers in payments innovation — and we aren’t stopping now. Email Rob at nichols@aba.com. 800.228.2581 MHM.INC Now more than ever people want self-service options. With our core integrated ITMs we can make this a reality both in the lobby and in the drive-up of your branch. SELF-SERVICE BANKING 10 NEBRASKA BANKER
RkJQdWJsaXNoZXIy MTg3NDExNQ==