JPMorgan, Bank of America and Citi Plan Shared Tokenized Deposit Network
JPMorgan, Bank of America, Citi and other major U.S. banks plan to launch a shared tokenized deposit network by the first half of 2027, according to CoinDesk citing the Wall Street Journal. The project is designed to give bank deposits blockchain-style speed and programmability while keeping funds inside the regulated banking system.
What happened?
JPMorgan, Bank of America, Citi and other major U.S. banks plan to launch a shared tokenized deposit network by the first half of 2027, according to CoinDesk citing the Wall Street Journal. The project is designed to give bank deposits blockchain-style speed and programmability while keeping funds inside the regulated banking system.
Why it matters
JPMorgan, Bank of America, Citi and other large U.S. banks are preparing a shared tokenized deposit network that could go live by the first half of 2027, according to CoinDesk, citing a Wall Street Journal report. The network would be operated by The Clearing House, the bank-owned payments company, and is being developed as traditional lenders respond to the growing role of stablecoins in digital payments.
JPMorgan, Bank of America, Citi and other large U.S. banks are preparing a shared tokenized deposit network that could go live by the first half of 2027, according to CoinDesk, citing a Wall Street Journal report. The network would be operated by The Clearing House, the bank-owned payments company, and is being developed as traditional lenders respond to the growing role of stablecoins in digital payments.
The project matters because it shows major banks trying to bring some blockchain capabilities into their own infrastructure instead of leaving faster digital settlement mainly to crypto-native issuers. Under the plan, conventional bank deposits would be represented as blockchain-based tokens that can move more quickly and around the clock, while the underlying money remains within the banking system.
Tokenized deposits differ from stablecoins in structure and issuer. Stablecoins are dollar-pegged crypto assets issued by companies outside the traditional banking system, while tokenized deposits represent customer money already held at a bank. CoinDesk noted that banks are concerned stablecoins could become more attractive if U.S. legislation advancing in Congress allows them to pay returns to holders.
For banks, the strategic issue is deposits. If customers move meaningful balances into stablecoins and crypto wallets, lenders could face pressure on a funding base they use to support credit across the economy. A shared tokenized deposit network is intended to offer faster, programmable payments without pushing those balances outside regulated banks.
The Wall Street Journal report said The Clearing House expects large multinational companies to be early users, particularly for programmable treasury functions, real-time liquidity management and cross-border payments. The network has reportedly been referred to by some participating banks as “the bridge” and by others as “the chain,” underscoring its role as a bank-led response to on-chain payment rails.