Major US Banks Join Forces on Tokenized Deposit Network

A group of the largest US banks is preparing to launch a shared tokenized deposit network by the first half of 2027 through real-time payment network The Clearing House.

The partnership involves major lenders, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, as traditional finance moves to counter the rise of stablecoins.

The project is designed to allow bank deposits to move across blockchain infrastructure with round-the-clock settlement, while remaining within the regulated banking system.

The move comes with the expectation that 2025’s CLARITY Act, which aims to establish a clear regulatory framework for the digital asset industry in the US, will soon be formally passed into law.

Unlike stablecoins, which are issued by private companies and backed by reserve assets, tokenized deposits represent traditional bank deposits in digital form. Banks argue this approach preserves existing regulatory protections while offering faster and more flexible payment capabilities.

The initiative comes as stablecoins such as USDC and USDT gain traction in payments, trading, and treasury operations, prompting concerns among traditional lenders that deposits could increasingly migrate away from banks. Analysts say the competition to become the preferred form of cash on blockchain networks is intensifying.

David Watson, chief executive of The Clearing House, told the Wall Street Journal that the industry faces a “radically different” future around on-chain payments and finance, describing the project as “a big move for the banks.”

The network will be available to banks across the US, although a technology provider for the underlying blockchain infrastructure has yet to be selected.