US banks plan tokenized deposit network to rival stablecoins

Major U.S. banks—including JPMorgan Chase, Citigroup, Bank of America and Wells Fargo—are forming a partnership through The Clearing House to create a shared tokenized‑deposit network. The system will place customers’ bank deposits on a blockchain, allowing 24/7 real‑time transfers while preserving existing regulatory and credit‑risk frameworks. The banks aim to launch the network in the first half of 2027 as a response to growing stablecoin competition and pending legislation such as the Digital Asset Market CLARITY Act.

Clearing House CEO David Watson described the initiative as “a big move for the banks,” noting that no specific blockchain platform has yet been selected. Early adopters are expected to be large multinational corporations seeking faster cross‑border payments and liquidity management. The effort reflects a broader push by Wall Street firms to tokenise assets and integrate blockchain infrastructure into traditional finance.