Major US banks, including JPMorgan, Citi, and Bank of America, plan to launch a shared tokenized deposit network by the first half of 2027 to protect deposits from stablecoin competition, as reported by the Wall Street Journal. The system, operated by The Clearing House, will convert bank deposits into digital tokens for fast blockchain transfers, aiming to retain deposits within the banking system while offering crypto-like capabilities like real-time payments. This move responds to stablecoins issued by crypto firms outside traditional banking, which may soon pay returns under potential US legislation, threatening bank deposits. The network targets large multinationals for programmable treasury and cross-border payments, marking a significant shift toward on-chain banking.

Key facts

• JPMorgan, Citi, Bank of America plan tokenized deposit network by H1 2027.
• System operated by The Clearing House aims to counter stablecoin deposit threats.
• Tokenized deposits enable fast blockchain transfers while staying in banking system.
• US stablecoin legislation may allow returns, making deposits less attractive.
• Network targets multinationals for programmable treasury and payments.