Major U.S. banks are moving toward a shared tokenized deposit network, with a target launch in the first half of 2027. The Wall Street Journal reported that The Clearing House, owned by JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and others, will operate the system. The network will be available to banks across the United States.
Banks Build a Blockchain Payment Network
The planned system connects existing bank payment rails with blockchain infrastructure used in digital assets. Tokenized deposits on the network can move instantly and settle around the clock, allowing banks to offer blockchain-based payments without pushing deposits outside the regulated banking system. Clearing House CEO David Watson told the Journal the project is "a big move for the banks" and that the industry faces a "radically different" future around on-chain payments and finance. The banks have not yet selected a blockchain vendor; some participants call the project "the bridge," while others refer to it as "the chain."
Tokenized Deposits Gain Edge Amid Stablecoin Clash
The plan comes as banks grow concerned that stablecoins could pull deposits away from lenders. According to the Journal, large banks worry stablecoins may siphon deposits if crypto companies win more consumer and corporate business. Banks are also unhappy with stablecoin legislation that leaves room for interest-like structures. Tokenized deposits are preferred because they carry the same credit risk profile, regulatory treatment, and accounting approach as traditional deposits, making them easier to adopt under existing rules.
Corporate Treasury Demand First
The Clearing House expects large multinational companies to be among the first users. Uses include programmable treasury operations, real-time liquidity management, and cross-border payments. Citi's head of services, Shahmir Khaliq, said the network strengthens banks' role in financing and capital markets. Bank of America's Mark Monaco noted clients aren't "beating down the door" for tokenized deposits yet, but some interest exists. JPMorgan already uses JPM Coin for internal institutional payments and launched a deposit token on Base, a public blockchain linked to Coinbase. Last year, major banks explored a joint stablecoin effort through The Clearing House and Zelle operator Early Warning Services.