JPMorgan Chase, Bank of America, Citigroup and other large lenders will launch a tokenized deposit network through The Clearing House by the first half of 2027.
The initiative aims to enable round-the-clock blockchain settlement of bank deposits. It seeks to counter the rise of stablecoins such as USDC and USDT while keeping funds inside the regulated banking system. Reid Noch, vice president of U.S. equity market structure at TD Securities, said the project follows the GENIUS Act and reflects growing competition among stablecoins, tokenized deposits and tokenized money market funds. Cody Carbone, CEO of the Digital Chamber, noted that the largest U.S. banks are voluntarily moving onchain. A March report from Jefferies estimated that stablecoins could cause a 3 to 5 percent runoff in core deposits over five years. Noelle Acheson observed that banks have long used private blockchain systems and are now expanding this approach across institutions.
