Clearinghouse, a private payments infrastructure company owned by America’s largest financial institutions, will operate a shared blockchain network that allows bank deposits to move on-chain with 24-hour settlement.
JPMorgan Chase, Citigroup, Bank of America, Wells Fargo and other major commercial banks are supporting the effort, with a goal of launching in the first half of 2027, according to the Journal.
“This is a big move for banks,” said David Watson, CEO of the clearinghouse. “The industry faces a fundamentally different future built around on-chain payments and finance.”
why now?
Stablecoin issuers and crypto-native payment companies have been steadily encroaching on territory that traditional banks considered theirs by default. The regulatory environment under the Trump administration has accelerated that pressure by providing a clearer framework for non-bank payment providers to operate at scale.
The consortium model through The Clearing House allows banks to build a shared infrastructure rather than fragmented and competing solutions.
Related: Goldman Sachs launches tokenized real estate fund with Apex and Archax
Tokenized deposits and stablecoins
When banks tokenize deposits, the underlying dollars never leave the regulated banking system. This is still a direct charge to the issuing institution, may be covered by FDIC insurance, is fully compliant with AML and KYC requirements, and is programmable for automated settlement.
Stablecoins issued by entities other than banks are completely outside of that boundary. For large companies managing engine depot operations, the distinction makes commercial sense.
The bank that didn’t wait
Some institutions moved without waiting for the consortium. JPMorgan launched JPM Coin on Coinbase’s Base network for institutional investors in late 2025. Citigroup’s Citi Token Service already offers 24/7 US dollar settlement for cross-border payments. BNY launched its tokenized deposit service in January 2026.
Another retail-focused initiative called Cali Network, which includes local banks including Huntington, KeyCorp and M&T Bank, is targeting a consumer launch in the fourth quarter of 2026.
What the virtual currency market should pay attention to
Tokenized deposits and stablecoins are likely to coexist with a variety of key use cases. The more important development is that trillions of dollars of institutional trading volume is now being directed to blockchain rails, regardless of which product wins the competition. Payment infrastructure and interoperability protocols will benefit from the changes, regardless of the outcome.
Related: Justice Department-led operation disrupts 1.4 million fraudulent accounts
