Banks do banking. A participating bank keeps the role it already has: it accepts and holds deposits. It also retains its contractual, compliance, oversight and operational responsibilities, including those arising from its arrangements with the issuer.
Briefing for banksBank funding reaches channels where demand for digital dollars already exists, through the issuer and distribution / liquidity partners.
An additional wholesale deposit channel capable of competing with other rate-sensitive funding, with the deposits staying on balance sheet.
Issuance and redemption sit with a separate regulated issuer.
The ledger is common across participating institutions. The bank integrates with its issuer's arrangements and keeps its own books.