A consortium of major U.S. banks is pushing ahead with plans to move customer deposits onto a blockchain network by 2027. The network, to be operated by The Clearing House — a payment company jointly owned by member banks — will allow 24/7 transfer of tokenized deposits, effectively turning bank money into programmable on-chain assets. David Watson, CEO of The Clearing House, described the project as a necessary leap for the industry, noting that on-chain payments are reshaping the future of finance.
Joint Blockchain Network Takes Shape
The chosen blockchain provider has yet to be announced. Internally, some banks refer to the initiative as “the bridge” while others call it “the chain.” Tokenized deposits differ from stablecoins: they are digital representations of funds already held on a bank’s balance sheet, not separate crypto assets issued by non-bank entities. The structure ensures the funds remain within the regulated banking perimeter.
Stablecoin Legislation Pressures Banks to Act
The push comes amid rising unease among large banks about stablecoins gaining ground in corporate finance and payments. Banks worry that if crypto-native platforms win more retail and institutional clients, liquidity could leak from the traditional system. The pending CLARITY Act in Washington — which may permit stablecoins to bear interest-like features — has further accelerated the banks’ timeline. While crypto firms see the current draft as a workable compromise, banks view tokenized deposits as a way to keep deposits under their own oversight.
Corporate Giants First in Line; JPMorgan Leads
Initial use cases are expected from large multinational corporations, particularly for cross-border payments and liquidity management. Shahmir Khaliq, Citigroup’s global head of services, called the network a move that will strengthen banks’ roles in capital markets. Mark Monaco, Bank of America’s head of global payment solutions, struck a more cautious tone, saying customer demand for tokenized deposits is not yet strong but that the network will help banks prepare for possible future growth.
JPMorgan already has the deepest track record in this arena. The bank operates JPM Coin on its private blockchain for internal corporate settlements and has also deployed a deposit token on Coinbase’s public Base blockchain, accessible exclusively to institutional clients. As the 2027 target approaches, America’s largest lenders are racing to stay relevant in an era where money moves on-chain.