Largest U.S. banks have moved toward a shared tokenized deposit network as stablecoin firms push deeper into payments and corporate finance.
Summary
- Major U.S. banks plan a tokenized deposit network through the Clearing House, with launch targeted for early 2027.
- The network will let banks move tokenized deposits instantly across blockchain infrastructure with round-the-clock settlement support.
- Banks see tokenized deposits as a regulated alternative to stablecoins that keep customer deposits inside the banking system.
The Wall Street Journal reported that the Clearing House will run the system, a real-time payment network owned by JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other major commercial banks. The network is expected to launch in the first half of 2027 and will be available to banks across the United States.
Banks prepare a blockchain payment network
The planned system will connect existing bank payment rails with blockchain infrastructure used in digital assets. According to the Journal, tokenized deposits on the network could move instantly and settle around the clock, giving banks a way to offer blockchain-based payments without pushing deposits outside the regulated banking system.
Clearing House CEO David Watson told the Journal that the project is “a big move for the banks,” adding that the industry faces a “radically different” future around on-chain payments and finance.
The banks have not selected the blockchain vendor for the network, according to the report. Some participating banks have called the project “the bridge,” while others have referred to it as “the chain.”
Tokenized deposits gain ground amid stablecoin clash
The plan comes as banks watch crypto firms compete more directly in payments. The Journal reported that large banks have grown concerned that stablecoins could pull deposits away from lenders if crypto companies win more business from consumers and corporations.
Banks and crypto firms have also clashed over stablecoin legislation that advanced recently in Washington. According to the Journal, banks remain unhappy that the rules leave room for interest-like structures on stablecoins, while crypto companies have described the proposal as a compromise.
Banks prefer tokenized deposits because they represent regular bank deposits on a blockchain. The Journal reported that this structure keeps the same credit risk profile, regulatory treatment, and accounting approach as traditional deposits, making it easier for banks to adopt digital payment systems under existing rules.
Corporate treasury demand comes first
The Clearing House expects large multinational companies to be among the first users of the network, according to the Journal. Potential uses include programmable treasury operations, real-time liquidity management, and cross-border payments.
Shahmir Khaliq, Citi’s head of services, told the Journal that the network is another step that strengthens banks’ role in financing, money management, and capital markets.
At Bank of America, Mark Monaco, head of global payments solutions, said clients are not “beating down the door” for tokenized deposits. Still, he told the Journal that some interest exists and that the network would help banks stay ready as adoption develops.
JPMorgan has already used JPM Coin for internal institutional payments on its private blockchain, according to the Journal. The bank has also launched a deposit token called JPM Coin on Base, a public blockchain linked to Coinbase Global, with access limited to institutional clients. Last year, major banks explored a joint stablecoin effort through the Clearing House and Early Warning Services, the operator of Zelle, the Journal previously reported.
