Exclusive: JPMorgan, Citi and Other Major Banks Plan Tokenized Deposit System to Rival Crypto
The largest U.S. banks are preparing to launch a tokenized deposit network next year in a move aimed at strengthening their position against crypto firms expanding deeper into mainstream finance under President Trump. The initiative reflects a broader push by major lenders to modernize payments infrastructure while keeping bank deposits at the center of the financial system.
The new network is designed to connect traditional payment rails with the technology used by digital assets. By doing so, it could allow banks and their customers to move money using systems that are faster, more flexible, and better suited to blockchain-based financial products, while still relying on regulated banking institutions. The effort shows how traditional finance is adapting to the growing influence of tokenized assets and crypto-enabled payments.
The network will be operated by The Clearing House, a real-time payments company owned by several major commercial banks. Among its co-owners are JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, along with other large lenders. Their involvement underscores the scale of the project and the importance banks place on controlling how digital payment systems evolve in the U.S.
Tokenized deposits represent bank deposits recorded and transferred on a digital ledger rather than through conventional payment systems alone. Supporters say they can improve speed, reduce friction, and support new types of financial services. For banks, such a system could help preserve customer relationships and deposit flows at a time when crypto companies are seeking to offer more payment and settlement services.
The planned network also highlights how competition between banks and crypto firms is intensifying. As digital asset companies expand their offerings, major banks are moving to ensure they do not lose ground in payments, settlement, and other core financial functions. The launch of a tokenized deposit network would mark one of the clearest signs yet that large U.S. banks are willing to adopt blockchain-linked infrastructure when it supports their strategic interests.
The timing is also significant. Under President Trump, the regulatory and political environment may be more favorable to crypto companies than in previous years, increasing pressure on traditional banks to innovate. The banks’ initiative suggests they are not waiting for disruption to come from outside the industry. Instead, they are building their own version of digital payment infrastructure in partnership with a network they already control.
If successful, the project could become an important bridge between the banking system and the digital asset economy. It may also influence how other financial institutions approach tokenization, payments modernization, and blockchain adoption in the years ahead. The move signals that major banks are positioning themselves to compete not only with each other, but also with the rapidly evolving crypto industry.
