Jake predicts that through the adoption of tokenized deposits, traditional finance firms will rapidly transform into on-chain, crypto-native institutions.

Banks can pay yield on tokenized deposits in the same manner as they do on traditional bank deposits.

Jake believes tokenized deposits, rather than stablecoins, are the primary mechanism through which traditional banking will adopt on-chain assets.

Tokenized deposits are eligible for FDIC insurance because they are legally treated as bank deposits.

Tokenized deposits are legally treated as bank deposits, which distinguishes them from stablecoins.