Jeong Yu-sin's FinTech Story: Blockchain's Openness and Bank Trust Compete for Leadership in 'On-Chain Cash'

A new form of currency competition is emerging in financial markets. Stablecoins, issued by private firms as digital assets backed by cash and government bonds, are clashing with tokenized deposits that digitize traditional bank deposits. Both maintain the value of legal tender and support 24/7 instant and automated payments, but their issuers and trust foundations differ. While stablecoins represent internet money growing outside traditional banking systems, tokenized deposits signify the digital expansion of the banking sector. The core driver of this competition is asset tokenization. Although trading of assets like bonds, funds, and real estate has begun on blockchains, the lack of secure digital currencies to settle transactions has limited its efficiency. As assets move 24/7 but bank transfers remain tied to business hours and national payment networks, stablecoins with established distribution networks and tokenized deposits leveraging institutional trust now dominate the 'on-chain cash market'.