US Banking Giants Unite to Build Tokenized Deposit Network

The project seeks to bridge blockchain technology with traditional payment rails, allowing institutions to clear and settle transactions at any time. Unlike stablecoins, which exist outside conventional banking, these tokens represent direct claims against funds held within the regulated system. By keeping assets on bank balance sheets, the institutions intend to offer the speed of crypto-native services while maintaining established legal protections.

More than a dozen additional firms, including BNY, HSBC, and Santander, have signaled support for the infrastructure. The Clearing House is currently working toward a launch window in the first half of 2027, though the specific blockchain technology remains unselected. While firms like JPMorgan and Citigroup already maintain proprietary payment services, this shared network aims to remove the limitations of closed, bank-specific systems to scale institutional on-chain activity.

Parallel to this technical development, major banking associations are lobbying the US Senate to tighten reward regulations within the CLARITY Act. Industry groups fear that crypto platforms offering interest-like incentives could siphon deposits away from the banking sector, reducing capital available for lending. While Goldman Sachs has diverged from the broader banking lobby by advocating for the bill's advancement to secure regulatory certainty, other executives remain focused on preventing competitive disadvantages in the emerging digital asset market.