For forward-thinking banks, the path forward involves a strategic approach that may include both stablecoins and tokenized deposits. Tokenized deposits offer another path by converting traditional bank deposits into blockchain-based assets. The main benefit of this approach is that tokenized deposits carry the same regulatory protections, deposit insurance, and central bank backing as traditional deposits to ensure stability while providing a conservative entry point into blockchain technology. Meanwhile, properly designed stablecoins can serve different purposes. They enable banks to compete in new markets, serve crypto-native customers, and participate in the growing decentralized finance ecosystem. And with a rapidly expanding ecosystem and a growing cadre of developers looking to integrate blockchain technology into financial services, banks that offer both options will be best positioned to meet diverse customer needs. The benefits offered by both approaches include enabling instant, low-cost cross-border payments, programmable smart contracts for automated financial services, and enhanced transparency for regulators. For stablecoins specifically, the advancing regulatory frameworks are establishing clear guidelines for reserves, capital requirements, and consumer protections. Rather than viewing stablecoins and tokenized deposits as competing options, banks should consider how each can complement their overall digital asset strategy. While stablecoins are all the rage, banks should take an approach that balances their appetite for innovation with proper risk management. Once they understand the regulatory landscape and have proper safeguards in place, they can explore issuing a stablecoin and consider tokenized deposits. By embracing multiple paths into the digital asset economy, banks can responsibly start their journey into blockchain while remaining steady on firm financial ground.