Tokenized deposits (TDs) are drawing attention as a form of on-chain bank money. Because they share surface features with payment stablecoins -- 24/7 settlement, programmability, apparent price stability -- TDs are sometimes described as bank-issued stablecoins or functional substitutes. They are neither. TDs and stablecoins differ in their legal nature, risk profile, eligible users, and how they circulate. Clearing up these distinctions is not just academic. It affects how firms structure products, how regulators write rules, and where the next phase of financial infrastructure gets built.

This whitepaper by the Stablecoin Standard (SCS) explores the evolving RegTech landscape supporting financial crime prevention in blockchain-based financial systems. It highlights how emerging technologies—AI, APIs, digital identity tools, and blockchain analytics—are enabling real-time, privacy-aware compliance.