Banks Are Building Tokenized Deposit Chains According to Chainlink’s Nazarov

Chainlink co-founder Sergey Nazarov revealed at Sibos 2026 that major banks are moving beyond treating blockchain as a mere experiment. They are now actively building their own tokenized deposit chains, marking a significant shift in institutional adoption of blockchain technology. Nazarov’s comments came during multiple panel sessions at the annual banking conference held in Miami Beach from September 28 to October 1. The focus has shifted from whether banks will adopt onchain deposits to how they will ensure these separate chains can communicate with each other.

Nazarov emphasized that institutions require infrastructure capable of managing multiple blockchain environments. He highlighted Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and the Chainlink Runtime Environment (CRE) as solutions to this challenge. CCIP acts as a universal translator, enabling assets and messages to move between incompatible networks. Meanwhile, CRE provides an operating environment for institutions to run workflows across different systems, potentially saving them billions annually through efficient onchain operations.

Chainlink also showcased two key demos at the event. The first demonstrated how financial institutions could connect to Swift’s blockchain ledger, enabling 24/7 cross-border payments and smart contracts using tokenized deposits. The second demo involved collaboration with DTCC on the Collateral AppChain, designed to streamline collateral management by handling assets in near real-time across different chains.

Tokenized deposits represent bank liabilities that function as programmable digital tokens, offering instant transfers and coded rules while remaining within regulated banking systems. These tokens are backed by bank balance sheets and existing regulatory frameworks, including FDIC insurance. Initiatives like the Cari Network and the On-Chain Money Initiative, involving around 46 banks, are pushing for wider adoption, with the latter aiming for a 2027 launch.

The shift toward tokenized deposits allows banks to compete with nonbank digital currencies while maintaining regulatory protections. The involvement of major players like DTCC, J.P. Morgan, and Microsoft signals that this conversation has moved beyond crypto-native circles into mainstream financial infrastructure. Key milestones to watch include the progress of the Cari Network, the On-Chain Money Initiative, Swift’s ledger connections, and the DTCC Collateral AppChain.