JPMorgan Chase, Citigroup, and Bank of America are developing a shared digital deposit network that could go live in the first half of 2027. According to The Wall Street Journal, the project reflects growing concern among traditional lenders that stablecoins could draw customers and deposits away from banks.
The network will be operated by The Clearing House, a payments company owned by major banks. It will allow customer deposits to be converted into digital tokens that move over blockchain technology while remaining inside the regulated banking system.
Stablecoins are gaining momentum as a faster and cheaper way to move money. The proposed legislation in the US could also allow some stablecoins to offer returns to users, increasing their appeal compared with traditional bank accounts.
Also Read: Future of Stablecoins: Adoption, Regulation, and Market Growth
For banks, deposits are more than customer savings, they are a key source of funding for loans and other financial services. A large shift toward stablecoins could put that model under pressure.
‘This is a big move for the banks,’ CEO David Watson told the newspaper, describing a ‘radically different’ future around onchain payments.
The proposed tokenized deposit network is designed to offer the speed and flexibility of crypto-based payments without moving money outside the banking sector. The report said large multinational companies could use the system for real-time cash management, automated treasury operations and faster cross-border payments.