US Banks Build Shared Tokenized Deposit Network with Targeted 2027 Launch

The largest banks in the US are building a shared network to enable corporate clients to move tokenized deposits around the clock, seven days a week. The project, coordinated through The Clearing House, is targeting a first half 2027 launch and will allow participating banks to create deposit tokens that represent claims on their liabilities.

JPMorgan Chase's Kinexys platform already processes billions of dollars in daily transactions for institutional clients, and the bank has confirmed that crypto trading for these clients is now operational. Wells Fargo announced plans to offer tokenized deposits to corporate clients this fall, joining JPMorgan, Citigroup, Bank of America, and The Clearing House.

The shared network will provide interoperability between participating banks' deposit tokens, allowing them to settle transactions in seconds instead of hours. This is a significant development, as it creates a competitive threat to stablecoin issuers that have captured the market in their absence.

On the asset layer, BlackRock has expanded its tokenized fund suite with BSTBL and BRSRV following the 2024 launch of BUIDL, which crossed $1 billion in assets under management. The advantage of tokenized funds is that they can settle in seconds, be used as collateral in real time, and trade outside of traditional market hours.