A group of US banking majors is reportedly planning to roll out a tokenised deposit network in the first half of 2027 to counter growing competition from crypto firms.
The network will connect traditional payment systems with blockchain infrastructure, reported the Wall Street Journal (WSJ).
It will be operated by The Clearing House, co-owned by JPMorgan, Bank of America, Citigroup, Wells Fargo and other major lenders.
It will enable instant transfers of tokenised deposits on blockchain with 24/7 settlements.
“This is a big move for the banks,” Clearing House CEO David Watson told the WSJ, as the sector prepares for a “radically different” future driven by on-chain finance.
The platform will be available to banks nationwide from the first half of 2027. A blockchain vendor is yet to be selected.
Internally, it has been referred to as “the bridge” or “the chain.”
Banks are bracing for the threat of widespread stablecoin adoption that could pull deposits away from the traditional system. Tensions persist over recent legislation allowing interest-like features on stablecoins, highlighted WSJ.
However, tokenised deposits represent traditional bank money on the blockchain, preserving the existing regulatory framework, credit risks, and accounting standards.
The Clearing House expects strong initial demand from large multinational corporations for uses such as programmable treasury operations, real-time liquidity management, and cross-border payments, added the report.
The initiative “cements” banks’ central role in financing and capital markets, according to Citi head of services Shahmir Khaliq.
Mark Monaco, head of global payments at Bank of America, noted adoption will take time, outlining that clients are not necessarily “beating down the door”.
JPMorgan already operates its JPM Coin tokenised deposit system on both private and public blockchains.
Last year, the banks explored a joint stablecoin project. While stablecoin issuance remains possible, some executives question broader use cases beyond cross-border payments.
“Big US banks target tokenised deposit network launch in 2027” was originally created and published by Retail Banker International, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
