Four major banks – JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo – are collaborating on a new network using digital tokens. This aims to enable instant, 24/7 payments using blockchain technology within the existing U.S. banking regulations.
Summary
- Four major US banks are jointly developing an interbank tokenized deposit network.
- The Clearing House is targeting a launch in the first half of 2027.
- Multinational companies will initially receive access to programmable treasury and cross-border payment tools.
- Banking groups are separately seeking tighter stablecoin reward rules under the CLARITY Act.
Four US banks move tokenized deposits onto one network
The Clearing House, which is owned by several large banks, will run the new network. This network will allow banks that join to instantly process and finalize digital payments – known as tokenized deposits – and seamlessly link these modern transactions with traditional payment systems.
Tokenized deposits are essentially digital claims on money you have in a traditional bank account. What sets them apart from other digital currencies like stablecoins is that the actual money backing these tokens stays within the secure, regulated banking system and enjoys the same legal protections as regular savings accounts.
This new network will first focus on helping large international companies manage their money. It’s designed to streamline tasks like handling funds, managing cash flow, making automatic payments, and sending money across borders.
According to The Clearing House CEO David Watson, this initiative represents a significant step forward for banks.
As a researcher following this project, I can share that it’s gaining traction with support from over a dozen financial institutions – including names like BNY Mellon, HSBC, PNC, Santander, TD Bank, Truist, and U.S. Bank. We’ve learned that the team is still in the process of selecting a blockchain provider for the initiative.
Shared deposit tokens create a bank-led stablecoin rival
Both JPMorgan and Citigroup currently have their own blockchain-based payment systems. This new project aims to connect those systems, enabling banks to easily send tokenized money to each other.
JPMorgan’s Kinexys platform processes over $7 billion worth of transactions each day and has handled more than $40 trillion since it began operating. Citi Token Services facilitates transfers of billions of dollars across Citigroup’s network in the US, UK, Singapore, and Hong Kong.
Connecting these separate networks could unlock their full potential. Max Neukirchen, a leader at JPMorgan Payments, explained that a secure and officially overseen system for processing digital deposits is essential for expanding the use of on-chain payments by institutions.
Stablecoins already allow for instant, 24/7 transfers, automated payments, and work across different blockchain systems. With $263 billion currently in use, they’ve created a solid payment system for those already using crypto, and traditional banks are now starting to take notice.
Allowing customers to deposit tokens would work like traditional settlements, but keep their funds listed as assets on banks’ balance sheets. For this to happen, banks – even though they compete for the same businesses – need to agree on shared technical standards and how everything will operate.
CLARITY Act dispute raises the stakes for US banks
A coalition is forming as U.S. banks lobby the Senate to strengthen rules for stablecoins within the CLARITY Act.
Banking groups representing banks across the country are urging legislators to stop cryptocurrency companies from providing rewards that resemble traditional savings account interest.
As I understand it, the new rules would stop stablecoins from offering simple interest if you just hold them. However, they *would* allow rewards if you actually *use* the stablecoins – like for payments or other active things. The banks are worried this could pull money out of traditional banking, meaning they’d have less to lend to people and businesses. Basically, they think crypto companies could incentivize people to move their money, and that’s what they’re pushing back against.
Goldman Sachs has broken with other banking groups regarding a potential delay of a new bill. CEO David Solomon believes the CLARITY Act should move forward, even though he acknowledges it’s not perfect. He argues that creating a national framework for digital assets will provide much-needed clarity and encourage their growth.
This view differs from those of leaders like JPMorgan’s Jamie Dimon, who worry the rules might unfairly hurt traditional banks. While Goldman Sachs supports moving the bill forward, that doesn’t automatically mean they agree with everything in it regarding stablecoins.
Tokenized deposit network targets first-half 2027 launch
The Clearing House intends to expand access to its blockchain-based payment system to a wider range of US banks, which could include smaller institutions that previously couldn’t afford this technology on their own.
Moving forward, progress hinges on choosing the right technology, establishing how the system will work, and linking it to current bank networks. The goal is still to launch in the first half of 2027, but the banks involved haven’t set a firm date yet.
Large companies will soon show if new, regulated digital tokens can offer the same quick transactions and automated features as stablecoins, all while keeping money within the traditional banking system.
2026-07-29 00:29