Overview: Where Each Wins
Stablecoins win on speed, global access, and transparent receipts; deposits win on FDIC insurance for small balances and embedded bank services. Yield and UX determine user preference across segments.
Yield: Market Rates vs APY
Stablecoin rewards align with market rates via reserves; bank APY lags due to net interest margins.
Access: 24/7 vs Bank Hours
Token rails are always-on; bank hours and batch processing limit flexibility.
Settlement: Finality and Reconciliation
Near-instant finality reduces reconciliation overhead and float; deposits settle within bank architectures.
Safety: FDIC vs Reserves
FDIC covers deposits up to limits; token safety depends on reserves, disclosures, and redemption.
Use Cases: Retail vs Corporate
Retail values simple protection and APY; corporates value speed, predictability, and global reach.
Conclusion
Expect coexistence. Choose rails based on yield, safety needs, and operational requirements.