Some of the largest U.S. banks, including

  • JPMorgan Chase,

  • Citigroup,

  • Bank of America, and

  • Wells Fargo,

are planning to launch a shared tokenized deposit network by the first half of 2027 as traditional lenders move to counter the growing influence of stablecoins and on-chain payment firms.

The system will be operated by The Clearing House, a real-time payments company owned by major U.S. banks, and will allow deposits held at banks to be represented as digital tokens that can move across blockchain infrastructure with around-the-clock settlement.

Unlike stablecoins which are typically issued by crypto firms, tokenized deposits remain within the regulated banking system and retain the same legal and credit characteristics as traditional bank deposits. Banks view the model as a way to deliver on-chain payments while preserving customer deposits and existing regulatory protections.

 

EXPERT OPINION | ‘Tokenized Deposits Are Probably Going to Take Over from Stablecoins ​5 Years from Now,’ Says Bank of England Policymaker

 

The initiative comes as stablecoins gain traction in payments and cross-border transfers raising concerns among lenders that deposits could migrate from bank accounts to digital-dollar issuers. The network is expected to support

  • corporate treasury operations,

  • liquidity management, and

  • international payments.

 

“This is a big move for the banks,” The Clearing House CEO, David Watson, told the Wall Street Journal, describing the industry’s shift toward on-chain finance as a “radically different” future.

 

Banking giants are “reacting to where value is already moving,” said Carl Grimstad, CEO of digital asset infrastructure provider, Lydian.

“This announcement shows that 24/7 programmable settlement is becoming increasingly important.”

 

Several participating banks have already developed their own on-chain payment infrastructure. JPMorgan’s deposit token platform, JPM Coin, is already being used by institutional clients for tokenized payments and settlements.

The project represents one of the most significant coordinated efforts by the U.S. banking sector to integrate blockchain technology into mainstream financial infrastructure while responding to competition from the rapidly expanding stablecoin market.

 

 

EXPERT OPINION | Stablecoins Will Maintain Dominance Over Tokenized Funds Due to Regulation, Says America’s Largest Bank

 

 

 

 

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