Banks develop proprietary blockchain networks for tokenized deposits

Major financial institutions are increasingly developing proprietary blockchain networks and tokenized deposit initiatives. In June, 17 large banks committed to The Clearing House’s on-chain tokenized deposit network, aiming to link on-chain activity with traditional payment systems for large-scale clearing and settlement.

However, industry experts warn of potential fragmentation. While banks like JPMorgan, Citi, and Wells Fargo are building individual platforms—such as Kinexys and Citi Token Services—there are concerns that these closed networks may recreate existing silos. A tokenized deposit currently represents a claim on the issuing bank that is often only redeemable among that specific bank’s clients.

This movement occurs alongside a growing real-world assets (RWA) market, which has surpassed $38 billion, and a stablecoin market cap exceeding $298 billion.