The biggest names in American banking are collaborating on a shared tokenized deposit network, targeting a launch in the first half of 2027. JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo are teaming up on a project that would convert traditional bank deposits into digital tokens on a blockchain, enabling instant, 24/7 settlements.
The network, overseen by The Clearing House, aims to provide programmable treasury management, real-time liquidity control, and enhanced cross-border transfers. Clearing House CEO David Watson called it "a big move for the banks."
The initiative is a defensive response to the growing threat from stablecoins like Circle's USDC and Tether's USDT, which offer instant, programmable money outside traditional banking rails. By combining the speed and programmability of crypto with the security of deposit insurance and regulatory clarity, these banks hope to retain customers within the regulated system.
No blockchain vendor has been selected yet, and technical specifications are still in development. The network builds on existing tokenization work by the participants, particularly JPMorgan's JPM Coin. The vendor selection could be a significant catalyst for the winning protocol.