JPMorgan, Citi and major US banks plan tokenized deposit system
The Clearing House is targeting a first-half 2027 launch for a blockchain-based network that would move tokenized bank deposits with instant settlement as large U.S. lenders respond to stablecoin and crypto-payment competition.
The Clearing House, backed by JPMorgan Chase, Citigroup, Bank of America and Wells Fargo, is working on a joint tokenized deposit network with a planned launch in the first half of 2027 as major U.S. banks push further into blockchain-linked payments. The blockchain-based system is expected to be operated by The Clearing House and is aimed primarily at multinational companies’ cash management and cross-border payments, allowing tokenized versions of bank deposits to move with instant settlement. The effort reflects how large lenders are trying to modernize payments and liquidity management while keeping funds inside the regulated banking system, as they respond to growing competition from stablecoins and crypto firms and to broader policy developments that could shape how digital dollars evolve inside and outside traditional finance.
- tokenized deposit network: A payment system that uses blockchain-based tokens representing bank deposits held within the regulated banking system.
- instant settlement: A transaction process in which payment is completed immediately rather than waiting for standard clearing timelines.
- liquidity management: How companies and financial institutions manage cash positions and move funds where they are needed.