According to Cryptopolitan on June 5, major U.S. banks, including JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo, are building a shared tokenized deposit network through The Clearing House—a clearing and settlement system owned jointly by member banks. The network is planned to launch in early 2027 and will allow member banks to transfer tokenized versions of customers’ deposits through blockchain infrastructure around the clock.
Tokenized Deposits vs. Stablecoins: Confirmed Technical and Regulatory Differences
Tokenized deposits (Tokenized Deposit) represent actual bank deposits recorded on a blockchain, rather than an independent digital asset like stablecoins. This structural difference enables institutions such as JPMorgan Chase to adopt blockchain infrastructure while maintaining their existing credit-risk profile and applicable regulatory and accounting frameworks, with funds remaining within the regulated banking system. This design helps the banking industry maintain its current regulatory advantages in competition with stablecoins, and also responds to compliance requirements from regulators for digital payment methods.
Statements From Three Executives
Shahmir Khaliq, head of services at Citigroup, said the network is “another step by banks that have a strong position in the capital markets and financing space.” Mark Monaco, head of global payment solutions at Bank of America, took a more cautious stance, noting that customer demand for tokenized deposits is not “rushing in,” but that there is indeed some interest, and that the network will help banks prepare for broader use cases. Large multinational companies are expected to be the first adopters, as their cross-border payment and liquidity management needs make them attractive customers for this type of solution.
Common Questions
Why did the four major U.S. banks choose to build this network through the clearing house instead of developing it individually?
The clearing house is jointly owned by all participating banks. As a neutral industry infrastructure, it can reduce the duplicate development costs each bank would otherwise incur, while also establishing unified standards. The shared network design also helps ensure interoperability across institutions, allowing corporate clients to transfer tokenized deposits between different member banks rather than being locked into a closed ecosystem of a single bank.
How does the legislative progress of the “CLARITY Act” affect this project?
According to the report, the banking industry has reservations about the provisions in the “CLARITY Act” that allow stablecoins to have interest-bearing functionality, worrying that stablecoins would drain more liquidity from the banking system. Building a tokenized deposit network is a preemptive move by the banking industry, aimed at establishing a blockchain-based payment alternative under the existing regulatory framework before the “CLARITY Act” is formally passed and provides stablecoins with broader legal legitimacy.
What is the relationship between JPMorgan’s JPM Coin and the deposit tokens on the Base chain, and this shared network?
JPMorgan’s JPM Coin runs on its private blockchain and is used only for internal institutional payments; the deposit tokens issued on Coinbase Base chain are also limited to access by institutional customers. This shared network was jointly established by multiple banks under the clearing house’s neutral architecture, and it is an independent project from JPMorgan’s existing one-sided solution. The source text does not explain whether there is any planned technical integration between the two.
