JPMorgan Chase, Bank of America, Citigroup and Wells Fargo are jointly developing an interbank tokenized deposit network that The Clearing House would operate, with a launch targeted for the first half of 2027. The system would settle bank money on blockchain rails at any hour while keeping the funds inside the regulated banking system. Banking groups are separately pressing the Senate to tighten stablecoin reward rules in the CLARITY Act.
Four major US banks are pooling their blockchain payment work into a single network, and The Clearing House is targeting a launch in the first half of 2027. The payments company, jointly owned by major commercial banks, will run the system so participating institutions can clear and settle tokenized deposits at any time while connecting blockchain-based activity with existing payment rails.
Tokenized deposits represent claims against money held at a commercial bank. Unlike stablecoins, the underlying funds remain within the regulated banking system and receive the same legal treatment as conventional deposits.
Multinational corporations get access first
The network will initially serve multinational corporations, and its proposed uses include programmable treasury operations, real-time liquidity management, automated payments and cross-border transfers. According to crypto.news, The Clearing House CEO David Watson said while discussing the project: “This is a big move for the banks.”
More than a dozen other institutions support the initiative, including BNY, HSBC, PNC, Santander, TD Bank, Truist and U.S. Bank. A blockchain provider has not yet been selected, according to earlier reporting.
Kinexys and Citi Token Services run inside closed walls
JPMorgan and Citigroup already operate separate blockchain payment services, but the new project would allow tokenized money to move between different banks. JPMorgan’s Kinexys platform processes more than $7 billion in average daily volume and has handled over $40 trillion since its launch.
Citi Token Services operates in the United States, United Kingdom, Singapore and Hong Kong, where it has transferred billions of dollars through Citigroup’s network. Stablecoins already provide 24-hour transfers, programmable settlement and access across blockchain networks, with about $263 billion in circulation.
Therefore a shared system could remove the limits of these closed networks. JPMorgan Payments co-head Max Neukirchen said a regulated market-infrastructure solution for clearing and settling tokenized deposits was needed to scale institutional on-chain payments. Yet the banks must agree on common technical and operating standards despite competing for many of the same corporate clients.
CLARITY Act reward rules split the banking lobby
The network is taking shape as US banking groups pressure the Senate to tighten stablecoin provisions in the CLARITY Act. The American Bankers Association, Independent Community Bankers of America and 76 state banking associations have asked lawmakers to prevent crypto platforms from offering incentives that function like interest on deposits.
Current language would prohibit interest-like returns on stablecoins held passively but permit rewards tied to payments and other qualifying activity. Goldman Sachs has split from the wider banking lobby over whether that disagreement should delay the bill, and CEO David Solomon supports advancing the act despite calling it imperfect.
His position contrasts with JPMorgan CEO Jamie Dimon and other banking executives, who have warned that the reward provisions could place regulated banks at a competitive disadvantage. Multinational companies will provide the first test of whether regulated deposit tokens can match the speed and programmability of stablecoins without moving funds outside the banking sector.
Source: crypto.news
Trading involves risk.
Risk Disclaimer
