US banks to launch tokenized deposit network by 2027

JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and other major U.S. banks are partnering with The Clearing House to create a tokenized‑deposit network that will run on a permissioned blockchain. The system is designed to allow bank deposits to be represented as digital tokens, enabling 24‑hour, instant settlement while keeping the assets within the regulated banking system. Launch is targeted for the first half of 2027.

The initiative follows recent legislative activity, including the GENIUS Act and the pending CLARITY Act, which aim to clarify regulatory treatment of digital‑asset infrastructure. Bank officials say the move is a response to growing stablecoin usage—especially USDC and USDT—and is intended to retain deposit liquidity within traditional banks while offering faster, cheaper cross‑border payments. Analysts note the network could reshape how digital cash is issued and may reduce core‑bank deposit volumes by a few percent over the next five years.