Central Bank Exploration of Tokenized Reserves
Fintech Notes, November 19, 2025
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- Central Bank Exploration of Tokenized Reserves
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Bibliographic details
- Authors: Tansaya Kunaratskul, Ashley Lannquist, Andre Reslow, Nicolas Zhang
- Published: November 19, 2025
- Series: Fintech Notes
- DOI: https://doi.org/10.5089/9798229025324.063
Overview
- Title: Central Bank Exploration of Tokenized Reserves
- Authors: Tansaya Kunaratskul, Ashley Lannquist, Andre Reslow, Nicolas Zhang
- Publication date: November 19, 2025
- Series: Fintech Notes No 2025/011
- Issue: 011
- Volume: 2025
- Pages: 40
- DOI: https://doi.org/10.5089/9798229025324.063
- Stock No: FTNEA2025011
- ISBN: 9798229025324
- ISSN: 2664-5912
Core question and scope
- Core question: How should central banks explore tokenized reserves?
- Scope: Exploration of making central bank reserves available to selected banks using distributed ledger technology (tokenized reserves).
- Coverage: Policy objectives for tokenized reserves; operating models and roles of central banks; implications for monetary policy implementation; alternative solutions; implementation strategies.
- High-level conclusion: Strategic decisions and policy options will vary across jurisdictions, reflecting differences in available resources, legal systems, and policy priorities.
Policy objectives for tokenized reserves
- Primary objectives discussed:
- Enable access to central bank money via distributed ledger technology for selected banks.
- Support liquidity management and the monetary base through tokenized instruments.
- Leverage smart contracts where appropriate to automate certain reserve-related functions.
Operating models and roles of central banks
- Operating model considerations:
- Models for making reserves available on distributed ledgers to a subset of financial institutions.
- Delineation of central bank roles in issuance, custody, validation, and oversight of tokenized reserves.
- Role implications:
- Central banks must determine operational responsibilities versus those delegated to private-sector participants.
Implications for monetary policy implementation
- Considerations:
- Effects on liquidity and the monetary base when reserves are tokenized and accessible on distributed ledgers.
- Interaction between tokenized reserves and existing instruments used for monetary policy implementation.
- Need to assess how tokenization affects transmission mechanisms and policy operational frameworks.
Alternative solutions
- Topics addressed:
- Non-tokenized alternatives to achieve similar policy objectives.
- Trade-offs between tokenized implementations and conventional electronic central bank reserves.
Implementation strategies
- Strategic choices and sequencing:
- Implementation strategies tailored to jurisdictional differences in resources, legal frameworks, and policy priorities.
- Phased or pilot approaches to testing technical, operational, and legal facets of tokenized reserves.
Subjects and keywords
- Subject: Asset and liability management; Blockchain and DLT; Central banks; International reserves; Liquidity; Monetary base; Money; Smart contracts; Technology
- Keywords: Blockchain and DLT; Central Bank Digital Currency; central bank exploration; Central Bank Money; digital currency; exploration of Tokenized reserve; Global; International reserves; Liquidity; Monetary base; Reserves; Smart contracts; staff members; Tokenization; Tokenized assets; Tokenized money
Central Bank Exploration of Tokenized Reserves — Fintech Notes 2025/011, authors Tansaya Kunaratskul, Ashley Lannquist, Andre Reslow, Nicolas Zhang; published November 19, 2025.
Content in this bundle
- FTN011 -- Central Bank Exploration of Tokenized Reserves