As stablecoin companies move further into payments and corporate finance, major U.S. banks are moving to shared tokenized deposit networks.
The Wall Street Journal reported that the clearinghouse will operate the system, a real-time payments network owned by JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and other large commercial banks. The network is scheduled to launch in the first half of 2027 and will be available to banks across the United States.
Bank prepares blockchain payment network
The planned system will connect existing bank payment rails to the blockchain infrastructure used by digital assets. According to the publication, tokenized deposits on the network can move instantly and settle around the clock, giving banks a way to offer blockchain-based payments without pushing deposits outside of the regulated banking system.
Clearing House CEO David Watson told the Journal that the project is a “huge move for banks,” adding that the industry faces a “radically different” future for on-chain payments and finance.
The bank has not selected a blockchain vendor for its network, according to the report. Some participating banks call the project a “bridge,” while others call it a “chain.”
Tokenized deposits gain momentum amid stablecoin clash
The plan comes as banks watch crypto companies compete more directly in payments. The newspaper reported that major banks are increasingly concerned that stablecoins could lure deposits away from lenders as crypto companies capture more transactions from consumers and businesses.
Banks and crypto companies have also clashed over stablecoin legislation recently advanced in Washington. Banks remain unhappy that the rules leave room for interest rate-like structures on stablecoins, the newspaper said, but crypto companies say the proposal is a compromise.
Banks prefer tokenized deposits because they represent regular bank deposits on the blockchain. The magazine reported that the structure maintains the same credit risk profile, regulatory treatment and accounting approach as traditional deposits, making it easier for banks to implement digital payment systems under existing rules.
The company’s financial needs are the top priority
The paper said the clearinghouse expects large multinational companies to be the network’s first users. Potential applications include programmable treasury operations, real-time liquidity management, and cross-border payments.
Shamir Khaliq, Citi’s head of services, told the Journal that the network is another step in strengthening the bank’s role in lending, treasury management and capital markets.
Mark Monaco, head of global payments solutions at Bank of America, said customers are not “bashing down the door” of tokenized deposits. Still, he told the Journal that some interest exists and that the network will help banks prepare for progress in implementation.
According to the magazine, JPMorgan is already using JPM Coin for internal payments on its private blockchain. The bank is also launching a deposit token called JPM Coin on Base, a public blockchain linked to Coinbase Global, with access limited to institutional customers. Last year, Barron’s previously reported that major banks explored joint stablecoin efforts through Clearinghouse and Early Warning Services, the company behind Zelle.
