Happy New Year everyone! I spent part of the holiday break reading up on stablecoins and tokenized deposits, mostly because I kept seeing the terms used interchangeably and was a bit confused. They’re often treated as the same thing, but they’re not and I wanted to make sure I understand all of the differences that matter for banks, and especially community banks. At a basic level: -Tokenized deposits are regular bank deposits, just represented on new rails (meaning newer pay

The New York Fed (they are on a great roll lately with their research!) just released a really interesting piece called “Economic Capital: A Better Measure of Bank Failure?” ( https://lnkd.in/dCNeSKWf ) and I think it speaks to something many of us in risk management have been talking about for years. The researchers built a solvency metric called Economic Capital (EC) which is basically the present value of a bank’s assets minus the present value of its liabilities and opera