US Banks Rush to Build Tokenized Deposit Network for Corporate Clients

Four of the largest US banks, JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo, are building a shared network for corporate clients to move tokenized deposits between participating banks on a 24/7 basis. The project, coordinated through The Clearing House, is targeting a first half 2027 launch.

The shared tokenized deposit network will allow corporate clients to move value faster and create a competitive threat to stablecoin issuers that have captured the market in their absence. Tokenized deposits inherit the existing regulatory framework for bank deposits, including FDIC insurance eligibility and capital requirements.

JPMorgan is furthest along with its Kinexys platform, which already processes billions of dollars in daily transactions for institutional clients. The platform operates as a permissioned blockchain that handles intraday repo, cross-border payments, and foreign exchange settlement.