Top US Banks Launch Deposit Token Network: Report

The planned network aims to connect traditional banking rails to blockchain infrastructure for around-the-clock settlement capabilities.

The largest banks on Wall Street will reportedly launch a deposit token network in the first half of 2027.

Leading the effort is Clearing House, a real-time payments company co-owned by major financial institutions including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo.

A project to bridge traditional payments with Blockchain technology

The Wall Street Journal Reports The project, called “The Bridge,” aims to connect traditional banking payment systems to blockchain infrastructure so that token deposits can move instantly with 24/7 settlement. It also states that the underlying blockchain will be built through a partnership with a third-party vendor that has not yet been selected.

“This is a big step for banks,” said David Watson, CEO of Clearing House, adding that the industry faces a “radically different” future when it comes to online payments and finance.

Citi believes that this initiative is an extension of the role that banks already play in the financial system. Shahmir Khaliq, head of corporate services, said the move was “another step that effectively enhances” the role of banks in financing, money management and capital markets.

Meanwhile, banks have been cautious about stablecoins. Worried Their use can divert deposits away from companies. Financial and crypto institutions were in fight for several months due to recently advanced legislation that would allow clients of the latter to earn interest on their stablecoin holdings.

Demand for adoption remains gradual

The report notes that all US banks will have access to the tokenized deposit network, with potential use cases including real-time liquidity management, programmable treasury operations, and cross-border payments. The clearinghouse also expects large multinational companies to be among its first users.

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On the other hand, Mark Monaco, head of global payment solutions at Bank of America, said that customers have not “knocked on the door” for token deposits yet. However, he also revealed that there is a growing interest in the product, also admitting that its adoption will take time.

JPMorgan has already used JPM Coin, an internal token deposit system for settlement Payments on its own blockchain. Recently, the company also launched a token on Base for its institutional clients.

The latest development comes after discussions last year between major financial institutions about… create Shared stablecoin through clearinghouse and early warning services. As much as this is still being explored, the Wall Street Journal said some banking executives are still unsure about the benefits these digital assets offer outside of cross-border payments.