Stablecoin yields are highlighting how far traditional bank deposit rates lag behind real short-term government benchmarks, turning “holding dollars” into a competitive product category outside the deposit system. Using FDIC national rates (Dec. 15, 2025) versus a Treasury reference yield of about 3.89%, the gap is stark: savings around 0.39%, interest checking around 0.07%, and money market deposit accounts around 0.58%, implying a spread of roughly 3.3%–3.8%.

BNY Mellon has launched a tokenized deposits pilot that mirrors institutional clients’ demand-deposit balances on-chain, positioning the bank in the growing race for on-chain cash and blockchain-based settlement. The service creates digital book entries on BNY’s Digital Assets platform so clients can move funds using blockchain infrastructure while keeping money inside the regulated banking system—aimed at faster, 24/7 settlement and programmable transactions.

The Czech National Bank (CNB) has quietly purchased around $1 million in Bitcoin (BTC), USD-backed stablecoins, and a tokenized deposit, creating a dedicated “test portfolio” for digital assets. This move comes despite European Central Bank (ECB) President Christine Lagarde’s firm stance that Bitcoin should not be included in central bank reserves under the ECB’s umbrella.

China’s central bank intensified its stance against stablecoins, with People’s Bank of China (PBoC) Governor Pan Gongsheng calling dollar-pegged tokens a threat to global financial stability and monetary sovereignty. Speaking at the Financial Street Annual Meeting in Beijing, Pan said stablecoins amplify vulnerabilities in the financial system and fall short of core compliance standards, including AML and KYC, warning they can facilitate illicit finance.

The Bank of England (BoE) has clarified that its proposed caps on stablecoin holdings and transaction sizes are intended to be temporary safeguards, not permanent barriers to digital asset adoption. Speaking at DC Fintech Week, Deputy Governor Sarah Breeden emphasized the BoE’s aim to support a role for regulated stablecoins within a “multi‑money system” while preserving financial stability during the transition.

Ripple CEO Brad Garlinghouse is urging U.S. policymakers to treat compliant crypto companies on par with traditional finance (TradFi) institutions. Speaking at DC Fintech Week, he said firms that meet Anti-Money Laundering (AML), Know Your Customer (KYC), and Office of Foreign Assets Control (OFAC) standards should receive the same regulatory benefits as banks—most notably access to a Federal Reserve “master account.”

A consortium of major banks—including Bank of America, Goldman Sachs, Deutsche Bank, Citi, and led by BNP Paribas—announced a project to explore issuing 1:1 reserve-backed stablecoins on public blockchains, pegged to G7 currencies such as the U.S. dollar, euro, and Japanese yen.