Major U.S. Banks to Launch Shared Tokenized Deposit Network by Mid-2027 to Compete With Stablecoins

JPMorgan Chase, Bank of America, Citigroup and other major lenders plan to launch a shared tokenized deposit network through The Clearing House by the first half of 2027. The network will enable round-the-clock blockchain-based settlement of bank deposits while keeping customer funds inside the regulated banking system. The announcement was made on Friday, June 6, 2026.

The initiative is designed to counter the rise of stablecoins such as USDC and USDT. Circle’s USDC and Tether’s USDT currently dominate the onchain cash market. Stablecoins are widely used for crypto trading, cross-border payments and increasingly for savings products.

U.S. equity market structure at TD Securities, said tokenized deposits address long-standing inefficiencies in global payments. "Anyone who has ever wired money, especially internationally, knows the process can be expensive and often takes one or two business days to complete," Noch said.

"Following the GENIUS Act, a competition seems to be emerging between stablecoins, tokenized deposits and tokenized money market funds to become the preferred onchain cash instrument," Noch said. Cody Carbone, CEO of the Digital Chamber, said the move shows traditional finance adopting blockchain technology. "The biggest banks in America are voluntarily coming onchain," Carbone said.

Noelle Acheson, author of “Crypto is Macro Now,” noted that banks have spent years experimenting with private blockchain systems that move money internally while maintaining strict control over users and transactions. The planned Clearing House network expands that model across multiple banks but remains far removed from public blockchain ecosystems where stablecoins circulate freely.

A report by Jeffries in March estimated that stablecoins could drive a 3% to 5% runoff in core deposits over the next five years and shrink average bank earnings by about 3%.