JPMorgan, Citi and Big Banks Plan New Tokenized Deposit System to Answer Crypto

Major U.S. banks, via the Clearing House (a payments network co-owned by JPMorgan, Bank of America, Citigroup, Wells Fargo and others), plan to launch a tokenized-deposit network aimed at competing with stablecoins and crypto firms. Targeted for first-half 2027, the network will link traditional payment rails to blockchain infrastructure to enable instant, 24/7 settlement of tokenized deposits. The move signals banks’ strategy to retain deposits and payments flows by offering on-chain, bank-backed tokens — a development that could blunt stablecoin adoption while accelerating institutional use of tokenized cash-like instruments. Market implications include greater competition between banks and crypto firms, potential shifts in deposit flows, and broader on‑chain payment adoption that could affect crypto-asset and payments markets as regulatory and vendor choices evolve.