JPMorgan Teams with Bank of America, Citi on Tokenized Deposit Network by 2027
JPM•JPMorgan Chase, Bank of America and Citigroup will build a shared tokenized deposit network operated by The Clearing House by the first half of 2027 to protect deposits from stablecoin competition. The system will convert deposits into blockchain-based tokens for near-instant settlement and onboard multinational banks thereafter.
1. Collaborative Tokenization Initiative
JPMorgan Chase, Bank of America and Citigroup are pooling resources to create a shared tokenized deposit network under The Clearing House, internally dubbed "the bridge," to digitize customer deposits on blockchain rails.
2. Stablecoin Competition and Deposit Risk
The initiative addresses growing competition from stablecoins offering yield, aiming to retain customer funds within the banking system by matching speed and settlement features of crypto.
3. Launch Timeline and Expansion
The network is slated to go live by H1 2027 and will convert deposits into digital tokens for rapid transfers, with plans to extend participation to multinational banks in future phases.
