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As blockchain and tokenization becomes mainstream, major banks will expand their infrastructure to support on-chain settlement, tokenized cash, and 24/7 payment rails.
This shift will enable faster cross-border transfers and instant settlements while reducing reliance on outdated correspondent systems for greater transparency.
Banks that blend traditional trust and regulatory strength with the speed and efficiency of blockchain are likely to lead the next generation of payments, settlements, and liquidity services.
Blockchain is no longer a side experiment for the banking industry. In 2025, some of the world’s biggest traditional banks have actively scaled on-chain settlement systems to deliver faster cross-border payments, real-time clearing, and tokenised cash movement. As blockchain infrastructure matures, institutions like JPMorgan, UBS, HSBC, Deutsche Bank, and Citi are redefining how money moves globally, blending the efficiency of regulated banking with the speed and transparency of decentralized technology.
JPMorgan has long been a front-runner in blockchain-based banking infrastructure. With institutional payment and wholesale settlement setups, it uses its own dollar-backed, digital token, JPM Coin, on a permissioned ledger. In addition, JPMorgan is part of broader industry initiatives that aim to modernize settlements through tokenized cash and permissioned ledger systems, providing real-time, 24/7 processing for interbank as well as institutional transfers.
Swiss bank UBS was one of the first banks to use blockchain for payments and settlements, particularly through its experimental project UBS Digital Cash. With an internal permissioned blockchain network, UBS has been testing its cross-border and multi-currency transfers (USD, CHF, EUR, CNY).
While its essential objectives include smart-contract settlements and intraday liquidity management, the work of UBS is characterized by an institutional motivation to curb friction in the global banking practices. By the end of 2024, UBS affirmed the pilot, noting that it would be expanding further.
One of the banks that is allegedly interested in blockchain-enabled payment railways and tokenized cash settlements through stablecoins is HSBC. As part of its industry-wide efforts, HSBC is engaging with dozens of banks to implement wholesale CBDCs and tokenized deposits. This movement is driven by the need for rapid international payments and effective global liquidity transfers.
Deutsche Bank has also taken major steps towards blockchain settlements in 2025. Given the broader banking-industry shifts, this bank reportedly executed its first euro transaction via a blockchain network earlier this year. The Deutsche Bank indicates that European establishments are now moving towards distributed-ledger infrastructure in payments, liquidity movements, and cross-currency settlement to enjoy the benefits of real-time settlement and reduced counterparty friction.
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Citi is among the global banks that considered planning tokenizing deposits and settlement systems based on blockchain in early 2025. According to industry reports, Citi is part of a group of large institutions that can issue or sponsor regulated stablecoins or tokenized-cash systems to facilitate a 24/7 payments infrastructure and the flow of liquidity.
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2025 introduced a bold new beginning: major traditional banks, including JPMorgan, UBS, HSBC, Deutsche Bank, and Citibank, are now actively developing or experimenting with on-chain settlement capabilities.
As traditional banks' blockchain payments evolve alongside advanced blockchain infrastructure, tokenized money, and real-time clearing systems, the financial landscape is now rapidly transforming. Soon, clients in international corporations and large-volume traders will gain settlement services that are much faster, more transparent, and efficient in all areas.
As the banking industry balances innovation with regulation, these on-chain settlement banks are likely to lead the global shift toward blockchain-enabled banking services.
What is “on-chain settlement” in banking?
On-chain settlements apply a blockchain or distributed-ledger technology (DLT) to complete any payment, transfer, or asset trade in a safe, automated, and typically near-instant fashion. This normally runs 24/7, without involving a traditional correspondent-banking network or an existing clearinghouse.
Why are traditional banks adopting blockchain now?
Given that stablecoins, tokenized cash, and DLT have now sufficiently evolved to provide real value, traditional banks are adopting these systems for real-time settlements, reduced costs, increased levels of transparency, enhanced liquidity controls, and updated global payment rails.
Are these blockchain-based banking settlements safe and regulated?
Yes, particularly with permissioned (private) blockchains by banks. They enable banks to provide access control, adhere to KYC/AML regulations, and integrate the benefits of blockchain with regulatory supervision.
Who can benefit from on-chain settlement capabilities?
Multinational corporations, import/export corporations, high-frequency trading, wealth managers, and institutional clients benefit from these functionalities; basically, it helps anyone who needs a quick money transfer across borders reliably or in case of large transactions of liquidity in a short period.
Will on-chain settlement replace traditional banking systems completely?
Not immediately. Most banks are now combining traditional banking with layers based on blockchain to allow on-chain settlement of transactions and tokenized assets to be settled without loss of traditional banking functionality including credit, lending, and regulatory compliance.
