Major US Banks Develop Tokenized Deposit Network for Continuous Settlement
JPMorgan, Citi, Bank of America, and Wells Fargo are collaborating on shared infrastructure for tokenized deposits and 24/7 settlement.
JPMorgan, Citi, Bank of America and Wells Fargo are working through The Clearing House to develop a Tokenized Deposit Network (TDN), a shared infrastructure that will enable tokenized bank deposits to move across participating institutions. The proposed network is designed to support continuous settlement and programmable payments while keeping transactions within the regulated banking system. The launch is currently targeted for the first half of 2027.
Key Highlights
Shared Network for Tokenized Deposits: The participating banks plan to connect their tokenized deposit initiatives through a common network operated via The Clearing House. Deposits will remain traditional bank liabilities but will be represented on a shared ledger to support faster movement of funds.
Continuous Settlement Capabilities: The TDN is being designed to process transactions beyond the operating limitations of traditional payment systems. This would allow participating institutions to settle tokenized deposits throughout the day, including weekends and holidays.
Building on Existing Bank Infrastructure: JPMorgan already operates institutional blockchain payment capabilities through Kinexys and has tested tokenized deposit solutions, while Citi offers digital transfer services across major financial centres. The TDN aims to connect these separate efforts into a broader network.
Focus on Institutional Payments and Liquidity Management: The proposed infrastructure is intended to support use cases such as cross border payments, intraday liquidity movement and programmable transaction workflows. The objective is to improve how institutional funds move between financial institutions.
Planned Launch in 2027: The banks are targeting a first half 2027 rollout, with The Clearing House providing coordination and interoperability across participants. The initiative represents one of the largest tokenized deposit projects currently under development within the banking sector.
What This Launch Tells Us
This initiative reflects a growing focus among major financial institutions on using tokenization to modernize payment and settlement infrastructure. Rather than introducing new forms of money, the project centers on digitizing existing bank deposits to enable faster and more flexible transactions within established regulatory frameworks. It also highlights how large banks are increasingly collaborating on shared infrastructure as demand grows for blockchain based financial services and real time movement of institutional capital.
