The New Banks — and the Vaults They Build

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Finance is being rebuilt quietly, not through headlines but through infrastructure.
Major banks are reshaping the foundation of how money moves — constructing digital custody platforms, issuing tokenized deposits, and wiring their internal systems for programmable, 24-hour settlement.

This is not speculation; it’s plumbing. The invisible machinery of finance — once based on ledgers and intermediaries — is being replaced by programmable money and token-based settlement. The change is subtle but profound: what shifts is not just speed, but control.

Where a traditional bank account was simply an entry on a balance sheet, a tokenized deposit is a digital object with embedded rules — determining how, when, and by whom it can move. It’s efficiency wrapped in code, with governance quietly shifting from people to systems.

Citigroup's decision to launch crypto custody services in 2026 reflects a broader institutional pivot. After two to three years of preparation, the bank will offer asset managers and clients the ability to store digital assets directly, rather than relying on third-party custodians. The bank is exploring both in-house technology and external partnerships, recognizing that custody strategy will vary by asset type and client segment. This follows moves by BNY Mellon, which has been testing tokenized deposits to modernize its $55.8 trillion payments infrastructure, and statements from JPMorgan executives indicating the bank will "be involved in stablecoins".​

Tokenized deposits — digital representations of traditional bank deposits recorded on blockchain infrastructure — are emerging as a parallel track. Unlike stablecoins issued by private entities, tokenized deposits remain on banks' balance sheets and retain deposit insurance eligibility. They enable programmable banking: automatic transfers, real-time cross-border liquidity, and conditional payments executed through smart contracts. HSBC has already deployed tokenized deposit services for corporate treasury management, allowing clients to move funds instantly across global locations. These are not experimental products. They are operational.​

For most people, this change will arrive quietly. Money will move faster, payments will clear instantly, and loans or investments may execute automatically. But that convenience comes with strings. Once deposits become programmable, financial behavior follows the code — not the policy. Limits, conversions, and compliance checks operate by design, not discretion.

Custody is shifting too. You may “own” your digital assets, but your access depends on the bank’s security system, not your own keys. It’s the same trust as before — only now, the gatekeeper is software.

Control follows infrastructure. Whoever builds the payment rails decides how money moves — and under what terms. Banks and regulators now define the architecture, setting fees, limits, and visibility.

Stablecoins and tokenized deposits show the contrast: the former offer freedom but face caps and oversight; the latter offer safety but remain inside the system. Both modernize finance, yet only one preserves autonomy.

Digital money will not feel optional. It will simply appear — fast, convenient, and pre-coded. The ease will be real. So will the dependency.

The next financial revolution won’t arrive with a press release.
It’s unfolding inside data centers and policy drafts, line by line, rule by rule.

Money is becoming more efficient — and more conditional.
The vault of the future will be digital.
The real question is not how fast it works, but who holds the key.

Deniss Slinkins,
Global Financial Journal