FIS: Digital Assets Are Forcing Banks to Rebuild Settlement Infrastructure

Jon Eisenstein, global head of digital assets and embedded finance at payments and banking technology vendor FIS, said tokenized deposits and stablecoins serve different functions, and banks need to first clarify which scenarios must retain institutional-grade control and which require broader distribution reach. According to an Oct. 22, 2026 report by PYMNTS, he attributed this shift to three factors: the convergence of decentralized finance and traditional finance, regulatory changes, and improved availability of infrastructure connecting the two.

In terms of specific forms, a tokenized deposit issued by a single bank is backed by that bank's deposits and can complete transactions within existing customer relationships; network-based tokenized deposits extend this model through operating rules shared by multiple banks. Eisenstein said that for banks and any institution using tokenized deposits, this backing and "good money" guarantee are prerequisites for the token to gain trust. The advantage of stablecoins lies in their reach across multiple networks, making them suitable for scenarios requiring end-point distribution.

At the technical level, blockchain-based systems can reduce the layers involved in payments, messaging, reconciliation and auditing, and conditions such as delivery versus payment can be written into transactions, enabling full completion or secure rollback. Real-time settlement allows funds to arrive without waiting for net settlement windows, but it also means funds can flow out instantly, imposing new control requirements on transaction speed. FIS also noted that as AI agents begin to initiate financial transactions, banks need to establish governance mechanisms for authorization delegation, permissions and audit trails.

Source: https://www.pymnts.com/blockchain/2026/fis-says-digital-money-puts-bank-infrastructure-to-the-test/