Leading U.S. Banks Join Forces On Tokenization Network

CryptoProwl

Fri, June 5, 2026 astatine 8:43 AM CDT 2 min read

Top U.S. banks JPMorgan Chase (NYSE: $JPM), Bank of America (NYSE: $BAC), and Citigroup (NYSE: $C) are joining forces connected a caller tokenization network. 

The biggest American banks program to physique a shared tokenized deposit web by the archetypal fractional of 2027 to support their deposits from the menace posed from stablecoins. 

The strategy volition beryllium operated by The Clearing House, the payments institution collectively owned by the banks. Internally, the banks are calling the tokenized web “the bridge.” 

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Tokenized deposits are blockchain representations of customers' wealth held astatine large U.S. banks. 

The caller strategy volition person deposits into integer tokens that tin beryllium transferred rapidly connected a blockchain.

The determination comes arsenic JPMorgan, Bank of America, and Citigroup turn progressively disquieted astir stablecoins competing against them for lawsuit deposits.

The banks person lobbied heavy successful Washington, D.C. implicit the past twelvemonth to effort and forestall stablecoins from offering output connected deposits akin to the involvement provided connected slope accounts. 

Stablecoins are cryptocurrencies whose worth is pegged to different asset, typically the U.S. dollar. Leading stablecoin issuers specified arsenic Circle (NYSE: $CRCL) are pushing to connection yield. 

The Clarity Act authorities presently winding its mode done Congress could let stablecoins to wage output and different rewards to consumers, making slope deposits little attractive.

If customers follow stablecoins astatine scale, banks could look a deposit formation to crypto wallets. Deposits are what banks trust connected to widen recognition and assistance money their ongoing operations. 

The tokenized web is designed to guarantee that deposits stay wrong the banking strategy portion giving them crypto-like velocity and colony capabilities, according to media reports.

The Clearing House reportedly expects ample multinational banks extracurricular the U.S. to besides clasp the tokenized deposit web arsenic they look to stave disconnected the menace from stablecoins.

The banal of JPMorgan Chase, the largest U.S. bank, has gained 19% implicit the past 12 months to commercialized astatine $310.89 U.S. per share.