JPMorgan, Bank of America, Citi to Launch Collaborative Tokenized Network

MarketsShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailJPMorgan, Bank of America, Citi to Launch Collaborative Tokenized Network

America's largest banks are gearing up to introduce a joint tokenized deposit network by mid-2027 to mitigate the risks posed by stablecoins on their deposits.

By Omkar Godbole Jun 5, 2026, 9:16 a.m. 2 min readMake preferred on

U.S. banks are developing a tokenized deposit network to counter the stablecoin threat. (Ikechukwu Julius Ugwu/Unsplash)

Key Points:

• Leading U.S. banks, including JPMorgan, Bank of America, and Citi, are set to create a shared tokenized deposit network by mid-2027, as reported by the Wall Street Journal.
• This network will facilitate the conversion of traditional bank deposits into blockchain-based tokens, enabling faster transactions while maintaining funds within the regulated banking framework.

The largest banks in the United States, such as JPMorgan, Citi, and Bank of America, are planning to implement a collaborative tokenized deposit system by the first half of 2027 to safeguard their deposits against the potential competition from stablecoins, according to a report from the Wall Street Journal.

The initiative will be managed by The Clearing House, which is a payments organization owned collectively by these banks. The network is informally referred to by some banks as "the bridge" and by others as "the chain," as noted by the WSJ.

Tokenized deposits represent customers' funds in a blockchain format held at a bank. The new system aims to convert these deposits into digital tokens, allowing for rapid transfers on a blockchain.

Stablecoins, which are digital assets pegged to the dollar and issued by crypto firms, operate outside the traditional banking ecosystem. The Clarity Act, which is progressing through Congress, could enable these stablecoins to offer returns to their holders, potentially making bank deposits less appealing, especially since stablecoins also provide quicker and cheaper payment options via blockchain technology.

If a significant number of customers opt for stablecoins, banks might experience a shift in deposits towards crypto wallets. Since deposits are crucial for banks to extend credit, the tokenized deposit network is designed to keep deposits within the banking system while offering features similar to cryptocurrencies.

The WSJ report suggests that The Clearing House anticipates that large multinational corporations will adopt the tokenized deposit network as a means to access programmable treasury functions, real-time liquidity management, and international payments.

David Watson, CEO of The Clearing House, emphasized to the newspaper that this is a significant advancement for banks, heralding a "radically different" future for on-chain payments.