Tokenized bank deposits, which involve recording bank balances on the blockchain, are being criticized for lacking the flexibility and technical features of stablecoins. Omid Malekan, an adjunct professor at Columbia Business School, argues that these deposits are less advantageous and may eventually be replaced by stablecoins. Malekan highlights that stablecoins, particularly those that are overcollateralized, maintain a 1:1 reserve of cash or cash equivalents, offering greater safety from a liability perspective compared to fractional-reserve banks issuing tokenized deposits. Additionally, stablecoins are composable, allowing them to be seamlessly integrated and used across various applications within the crypto ecosystem. In contrast, tokenized bank deposits are subject to permission requirements, customer identity verification (KYC) controls, and offer limited functionality, which restricts their usability and appeal in the rapidly evolving digital finance landscape.