Citigroup, JPMorgan and BofA to Launch Tokenized Deposit Network by H1 2027
C•Citigroup has joined JPMorgan Chase and Bank of America to build a shared tokenized deposit network operated by The Clearing House, set to launch by the first half of 2027 to convert bank deposits into blockchain tokens for faster settlement. The network aims to retain deposits within the banking system against stablecoin competition.
1. Partnership Formation
Citigroup has joined JPMorgan Chase and Bank of America to develop a shared tokenized deposit network; the project, internally dubbed “the bridge,” will be operated by The Clearing House and is slated to go live by the first half of 2027.
2. Tokenization Mechanics
The network will convert customer deposits held at member banks into digital tokens that can be transferred and settled on a blockchain, enabling near-instant settlement and improved payment efficiency.
3. Competitive Motivation
The initiative responds to growing stablecoin competition, as banks fear deposit outflows to crypto wallets offering yield; maintaining deposits on-chain helps preserve their funding base for lending and other operations.
4. Expansion Prospects
The Clearing House anticipates that large multinational banks outside the U.S. may join the tokenized deposit network over time, broadening its reach and reinforcing traditional banks’ position against digital asset providers.
