It could be layer 1 if it was coded at that level. Without that, it goes layer two where the application would have a token created for what is deposited. The payouts pertaining to that HBD in savings would go to the wallet holding the token. So if something is collateralized, the token would have to be placed into some type of escrow account. If the terms of payment were not met, then the token would be forwarded to the lender.

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