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Banks and fintechs outline pilot results for tokenized deposits and settlement rails
Summary
Paxos, Vantage Bank and Robinhood demonstrated early real‑world uses for tokenized deposits and stablecoins — from instant trucking payrolls to cross‑border payments that cut costs — while bankers urged caution on consumer holding of crypto deposits in the U.S.
Speakers from infrastructure providers and community banks described proofs of concept that use tokenization and stablecoins to speed settlement, reduce costs and enable new services for business customers.
Jeff Sennett, president and CEO of Vantage Bank, described a pilot that used tokenized deposits and smart contracts to pay a trucking company when a truck completed a route. He said early results show dramatically lower costs for cross‑border settlement — an international test registered around $0.28 per transaction versus roughly $6.78 for a traditional wire on their rails — and new operational capabilities for small business customers.
Charles Cascarella, CEO of Paxos, described Paxos as a neutral infrastructure provider that issues stablecoins on behalf of institutions and said Paxos supports interoperability across issuers. "We are neutral infrastructure," he said, explaining Paxos issues stablecoins for other organizations and operates under regulated trust arrangements.
Vlad Tenev, CEO of Robinhood, described the company’s first banking product (partnered with Coastal Community Bank) and said the firm is targeting features of private banking for a broader customer base. Robinhood has launched a high‑reward credit card and a concierge banking offering and is piloting cash‑delivery and other premium services that the company said aim to bring institutional‑grade features to a mass market.
Panelists and bankers emphasized practical near‑term value in using tokenized rails for 24/7 settlement and cross‑border flows, while several community bankers said U.S. retail demand to hold stablecoins as deposit substitutes is limited today. Internationally, panelists said stablecoins see greater use where access to U.S. dollar accounts is constrained.
All participants recommended careful testing with regulators and gradual operational rollouts to manage compliance, AML and counterparty risks.
