Wall Street Banks Join Forces on Tokenized Deposit Network Set for 2027 Launch

JPMorgan Chase, Citi and Bank of America are moving traditional bank deposits onto blockchain infrastructure by issuing tokenized deposits as bank liabilities. Unlike stablecoins, these assets remain linked to regulated bank accounts and can support round-the-clock payments, instant settlement and liquidity management for multinational companies. The initiative is a key part of major banks' efforts to compete with stablecoins.

The new network, operated by U.S. banking payments organization The Clearing House, is expected to launch in mid-2027. It will initially target corporate cross-border payments, offering instant fund transfers 24 hours a day, seven days a week. Participants include JPMorgan Chase, Citi and Bank of America. The development cost, transaction fees and first supported currencies have not yet been disclosed.