US banks are integrating blockchain and tokenised assets, reshaping the future of crypto finance within regulated systems.
Stablecoins and tokenised deposits are becoming core tools for faster payments, liquidity and secure crypto trading.
Digital asset custody, programmable collateral and blockchain settlement are moving from pilot projects to real banking infrastructure.
A deep transformation is underway within major US banks. After years of caution and guarded public commentary around cryptocurrencies, key parts of crypto finance are now being embedded into mainstream banking systems.
This shift rarely appears as headline news, yet multiple banks have entered pilot programmes and quietly integrated these technologies into their operations. Instead of crypto being an outside activity, its underlying infrastructure is moving toward the centre of regulated banking.
Regulators in the US have clarified the scope of what banks can safely do. The Office of the Comptroller of the Currency and other regulators signalled that banks may engage in certain digital asset activities provided proper risk controls are in place.
Technology has matured massively. Blockchain and distributed ledger platforms have developed to a point where tokenising deposits and assets becomes feasible for a bank’s treasury and settlement processes.
Client demand is shifting from speculative crypto trading toward real operational gains like faster settlement, lower funding costs and better intraday liquidity. Banking clients now recognise that digital-asset rails may unlock efficiencies that were previously cost-prohibitive
One of the most significant developments is the tokenisation of deposits. In this model, a bank deposit is represented digitally on a blockchain or shared ledger, meaning that bank-issued money can be transferred, settled or pledged nearly instantly.
For example, one large custodian bank has been testing tokenised deposits to modernise global payments and liquidity flows across a multitrillion-dollar payments footprint. The core idea: keep the deposit on the bank’s balance sheet (so it remains regulated money) but move it over more efficient rails.
This concept is gaining traction through “tokenised commercial bank money” and “tokenised liabilities” frameworks. Regulatory bodies and international institutions are discussing how commercial bank money can be represented on ledgers in a way that retains trust and stability while unlocking new functionality, such as 24/7 settlement and real-time movement.
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While tokenised deposits are designed within the bank-channel, stablecoins are increasingly being explored by banks themselves. In October 2025, major banks across the US and Europe announced that they are jointly exploring the issuance of stablecoins pegged to G7 currencies. The aim is to design a blockchain-based asset backed 1:1 by fiat, offered by regulated institutions. In parallel, research by global banks estimates the stablecoin market could reach between $500 billion and $750 billion in the coming years.
Regulatory tailwinds are important here. Analysts view 2025 as a turning point: tokenised cash and stablecoins are moving from fringe experiments to serious infrastructure-play territory. Banks see stablecoins not simply as speculative instruments, but as digital cash equivalents that work inside regulated frameworks.
Collateral is proving to be a very practical early use case for banks’ blockchain initiatives. A major banking institution has developed a “tokenised collateral network” which allows financial institutions to pledge assets as collateral on a ledger, without needing to physically move the holdings. This enables faster, automated re-use of assets and intraday liquidity.
Furthermore, this same institution has extended the model into private fund flows. Private-fund subscriptions and redemptions, which traditionally involve wires, manual reconciliation and multi-day processing, are now being executed via tokenised structures. What this means: fund administrators, banks and investors can reduce settlement risk, reconcile holdings faster, and record data in real-time.
Beyond plumbing and infrastructure, banks are packaging tokenisation for clients. For example, one large bank launched a tokenised money-market fund solution in mid-2025. Another institution was appointed investment manager and primary custodian for a tokenised US Treasury fund that had attracted nearly $300 million in assets.
These fund vehicles allow clients to access high-quality treasuries that are programmable and transferable on blockchain-like infrastructure. The advantage here is twofold: first, better access and movement of assets; second, the familiar regulatory and custodial protections remain intact.
A clear pattern is emerging: banks are not trying to rebuild the public, permissionless crypto networks, but rather extending regulated money and securities onto shared, often permissioned, ledgers. Pilots around “tokenised commercial bank money”, “tokenised liabilities” and wholesale digital-asset settlement suggest a future where deposits, central bank money and regulated stablecoins live and move on interoperable platforms.
Some central banks and international institutions view this as part of the next-generation monetary architecture: tokenised reserves, tokenised commercial bank money, and tokenised government bonds all residing on unified rails.
Large value cross border payment infrastructure is adapting too. Industry predictions estimate that by 2030, as many as one-in-four large-value international transfers could settle on tokenised-currency networks. These infrastructure changes promise fewer intermediaries, lower cost, faster settlement and, crucially, operation around the clock.
Institutional custody of digital assets has, in recent years, been evaluated primarily in the context of trading and exchange activity. Today, banks are positioning custody and digital-asset platforms as backbone infrastructure, supporting tokenised deposits, funds, collateral, and more.
Some banks are now preparing programs that allow clients to pledge crypto as collateral. The message from large institutions is increasingly obvious. Digital currencies are another asset route, not a separate concept.
Perhaps most importantly, the tone at the executive level has shifted. Banks that were once publicly dismissive about cryptocurrencies now speak openly about digital assets, tokenisation and stablecoins. For example, some bank CEOs have acknowledged that stablecoins and digital assets are “real” and likely to be part of the system by late 2025.
Executive sponsorship matters because internal bank transformation programmes require budget, risk-committee support and strategic alignment. When leaders frame digital asset infrastructure as mission critical rather than speculative, the internal shift from innovation labs to core business becomes possible.
Two major implications stand out. Liquidity will become more programmable. With tokenised deposits, tokenised funds and tokenised collateral, treasury operations can move from overnight or end-of-day batch cycles to near-real-time flows.
This reduces funding costs and operational risk. Market data and reporting will improve. On-chain settlement leaves structured, time-stamped records that flow into fund-accounting, audit and risk systems faster than today’s manual reconciliations.
There are still challenges. Interoperability among permitted ledgers, legal finality across jurisdictions, bank capital treatment of tokenised assets and regulatory clarity around stablecoins remain live issues. Regulated money, securities and data are being re-platformed for 24/7 finance. As the pipes turn digital, the label “crypto” may fade, and what remains is simply modern finance running on software-defined rails.
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US banks are not simply entering crypto in the sense of Bitcoin trading. They are absorbing the best ideas of blockchain and digital assets into regulated balance sheets. Tokenised deposits and stablecoins are being treated as payment utilities; collateral networks are unlocking intraday liquidity; custodians are standardising secure storage across both tokenised traditional assets and crypto-native holdings.
Regulators are clarifying what is permissible, encouraging measured experimentation at scale. The future of crypto finance is being built inside the banking system, and this time it looks built to last.
1. How are US banks involved in crypto finance?
US banks are using blockchain technology to tokenise deposits, manage digital assets, process faster settlements, and support regulated stablecoins.
2. What is the difference between tokenised deposits and stablecoins?
Tokenised deposits are digital versions of money held in traditional banks, while stablecoins are blockchain-based assets pegged to fiat currency, often issued by private firms or regulated institutions.
3. Why are banks using blockchain technology?
Banks use blockchain to speed up transactions, reduce settlement costs, improve transparency, and provide 24/7 access to financial services like payments and collateral management.
4. Are cryptocurrencies like Bitcoin part of these banking systems?
Banks mainly focus on blockchain infrastructure and tokenised assets, but some are exploring ways to use established cryptocurrencies like Bitcoin and Ethereum as collateral.
5. Is this shift regulated and secure?
Yes, banks must meet strict regulatory standards when dealing with digital assets, including risk management, cybersecurity, and compliance with federal laws and financial authorities.