A group of US banking majors is reportedly planning to roll out a tokenised deposit network in the first half of 2027 to counter growing competition from crypto firms.
The network will connect traditional payment systems with blockchain infrastructure, reported the Wall Street Journal (WSJ)
It will be operated by The Clearing House, co-owned by JPMorgan, Bank of America, Citigroup, Wells Fargo and other major lenders. It will enable instant transfers of tokenised deposits on blockchain with 24/7 settlements. “This is a big move for the banks,” Clearing House CEO David Watson told the WSJ, as the sector prepares for a “radically different” future driven by on-chain finance. The platform will be available to banks nationwide from the first half of 2027.
A blockchain vendor is yet to be selected. Internally, it has been referred to as “the bridge” or “the chain.” Banks are bracing for the threat of widespread stablecoin adoption that could pull deposits away from the traditional system. Tensions persist over recent legislation allowing interest-like features on stablecoins, highlighted WSJ.