Blockchains in traditional finance on the verge of colonization by the United States

Long confined to bitcoin and other disconnected crypto-assets from the real economy, distributed ledger technology (DLT) is undergoing a strategic shift in the United States. The question since the beginning has been: Can distributed ledgers replace financial infrastructures? Can they be used for traditional assets, including real estate?

It’s very concrete as well: Can we imagine our bank deposit in the form of a token on a distributed ledger rather than a record in our bank’s data center?

There is urgency, according to Paris Europlace, which dedicates a report to the subject. American commitment contrasts with European caution. If Washington manages to structure an efficient financial ecosystem based on DLT, with the United States controlling the infrastructure, it will attract more attractiveness for the dollar at the expense of the euro.

In the United States, it all starts with the presidential decree of January 23, 2025. Donald Trump announces the creation of a “President’s Working Group on Digital Asset Markets”, tasked with piloting American policy on crypto-assets. He abandons the e-dollar, the Fed’s digital currency (while the ECB wants a e-euro, absolutely) to focus on dollar-backed stablecoins, which have a monopoly. The United States opt for a model of digital finance based on private innovation.

The GENIUS Act, later adopted on July 18, 2025, regulates stablecoins by giving them a status of liquid asset: they can serve as collateral for derivative operations and facilitate interbank settlements. Even though the effective application of the text is scheduled for early 2027, several issuers – Circle, Ripple, Fidelity Digital, Bitgo, and Paxos – have already obtained a provisional license. Tether, the market leader with over $188 billion in circulation at the beginning of 2026, will follow suit. In parallel, major US banks are favoring deposit tokenization. The issue is not yet on the table in Europe: the e-euro has not yet seen the light of day and does not seem to follow the path of a distributed ledger. The amount that can be owned in e-euro will be limited to avoid draining deposits.

The rivalry between stablecoins and tokenized deposits poses a central question in the USA, according to the report – that of remuneration. Banks advocate the ban on any return, while the crypto-asset industry advocates for more flexibility. This debate should continue in the context of the future CLARITY Act, which aims to clarify rules in the field. The GENIUS Act imposes on stablecoin issuers to guarantee equal repayment – by allowing any holder to convert their token into its face value within reasonable deadlines and transparent fees. In practice, this promise is not fully ensured: stablecoins mostly trade on the secondary market, with liquidity becoming a critical factor, leading to a strong concentration around a few actors.

Tokenized deposits offer a logic closer to the traditional banking model, with clear rules for risk and liquidity management.

The risks also differ: a deposit carries a banking risk (counterparty), while a stablecoin depends on the quality of the assets backing it – often US Treasury bonds. It is important to remember that a stablecoin is fundamentally a US dollar in crypto form, issued by an institution that holds dollars as collateral.

The interoperability remains a major challenge: for stablecoins and tokenized deposits to be accepted in interbank settlements, they must be able to circulate without friction or loss of value in the traditional world of banks. It is up to the private sector to build a smooth, secure, and interconnected exchange system. For Paris Europlace, the balance emerging in the USA is virtuous: tokenized deposits will be used for domestic payments, while stablecoins, without yield (for now) or federal guarantee, will be used for international flows. These stablecoins offer foreign savers a privileged way to access the dollar if they cannot do so otherwise. Dollarization in emerging countries will intensify, and the inability of central banks to steer economies will worsen. One of the main advantages cited by stablecoin users is the possibility of 24/7 payments, even when banks are closed, especially for cross-border payments.

In theory, stablecoins can be issued against any currency. The current reality is that over 95% of stablecoins are issued in dollars. In short, the USA has created a pull for their dollar once again. For every stablecoin USD, the issuer must purchase a dollar, often in the form of a US government bond. A double hit: reinforcing the sovereignty of the dollar and financing the US deficit. Recently, Donald Trump can thank the savers of Venezuela for this.

In Europe, there must be a different approach to distributed ledgers, according to Paris Europlace, by capitalizing on its strength: the foundations of its monetary model that prioritize credit and deposits through banks. It is the banks that fuel the economy. Tokenized deposits should be a strategic priority because they anchor digital finance in the real economy.

The European Union had taken the lead in regulation with the MiCA regulation, which came into force in 2023. It regulates crypto-assets and service providers, but euro issuances remain marginal and DLT-backed tokens have virtually no decollateralization at this stage. In a few days, the first exchange based on distributed ledgers will launch: Lise. But it took a long time. For Europlace Paris, the European pilot regime for ledger-based market infrastructures, launched in 2023, has not met the expected success. It is too restrictive and also limits the scope of projects too much.

The Commission believes that there are still two main barriers blocking the development of these solutions in Europe: too restrictive a pilot regime and insufficient legal security in classic regulatory frameworks.

Subscriptions often still involve a conversion into traditional currency, which disrupts the entirely digital operation, the report adds.

For the chain to work end-to-end, there should be legal recognition of a payment method compatible with blockchain and further harmonization of rules between European countries. Currently, each state keeps its own definitions and frameworks, which hinders the emergence of a true common market.

Bank prudential regulations also complicate matters: stablecoins are treated more severely than other digital assets, with dissuasive capital and liquidity requirements. Without simpler rules, clear legal status, and better European coordination, tokenization will remain limited to restricted uses.

An industrial shift towards distributed ledgers and tokens is already underway in the USA, and the question now is who will set the standards for the new financial system. The United States are advancing rapidly, with a strategy that combines private innovation, support for dollar-backed stablecoins, and the development of tokenized deposits, which mechanically enhances the international attractiveness of the dollar.

So yes, Europe should favor Euro tokenized deposits and tokenized market infrastructures to modernize its finance without weakening its banking model, but without neglecting stablecoins, on the contrary, which Paris Europlace gives less importance to in its report. Because if all stablecoins remain in dollars, it is an added pull for the dollar in Europe as well. They will deepen the dollarization of emerging economies (as there is no need for banks, intermediaries, or black market to acquire dollars through this means) and could flow into Europe, contrary to what is needed to promote the euro as an alternative to the dollar. Europe must develop its stablecoins in Euro, without which the colonization of the world (and the vassalization of Europe) in dollars will continue.

Context:

• Distributed Ledger Technology (DLT) is experiencing a strategic shift in the United States.
• The US is focusing on dollar-backed stablecoins and digital finance based on private innovation.
• Tokenized deposits, stablecoins, and interoperability are key topics in the evolving financial landscape.

Fact Check:

• The content discusses the development of regulations and strategies related to digital assets and finance in the US and Europe.
• It touches on the potential impact of stablecoins, tokenized deposits, and distributed ledgers on the global financial system.