Odaily Planet Daily News - The European Banking Authority (EBA) has released a report on tokenized deposits, stating that from a regulatory perspective, tokenized deposits are essentially the same as traditional deposits. The agency plans to analyze existing regulations to determine whether they are adequate. It noted that, due to the limited activity of tokenized deposits so far, there is no urgency to take action. A survey conducted in March identified only two projects but did not specify their names. Analysis suggests that one of the projects should be the Commercial Bank of Germany's Currency Token (CBMT), as it mentioned five banks and five enterprises; the other could be Euroclear's D-FMI, as it is purely used for securities settlement and mentioned the UTXO used by R3's Corda enterprise blockchain. According to the EBA survey, 17% of EU banks plan to engage in tokenized deposits in the next two years. The paper discusses the benefits of tokenized deposits, such as programmability, efficiency, and atomic settlement. It believes that most banks are likely to adopt permissioned blockchains because there is a need to identify customers, and Basel Committee's crypto rules make it difficult for banks to use permissionless blockchains. However, the agency notes that blockchains have the typical 51% attack risk and potential reliance on third parties, while programmability may bring additional liquidity risks. Nevertheless, the report points out that it is still too early to discuss the impact of tokenization on deposit stickiness. The EBA believes it is crucial to distinguish between electronic money tokens (EMTs or stablecoins) issued by banks and tokenized deposits under the European crypto MiCA regulations. Both use DLT, are bank liabilities, and can be redeemed at face value. Deposits are linked to the identity of the account holder, while stablecoins are anonymous and thus related to the ownership of tokens. Due to the anonymous nature of stablecoins, they can be transferred to others, while tokenized deposits cannot. Using tokenized deposits for payments can eliminate liabilities at one bank while creating liabilities at another bank. Furthermore, interbank settlement must also be conducted. The EBA report mentioned several tokenized deposit projects globally, including at least 25 projects that are purely tokenized deposits, over 20 types of bank stablecoins, and 30 projects covering cross-border payments and other applications.