JPMorgan, Bank of America, Citibank, and Wells Fargo to launch 24/7 settlement infrastructure
Some of the largest US banks are reportedly planning to launch a tokenized deposit network in the first half of 2027 in response to growing competition from blockchain companies expanding into traditional finance.
The Clearing House, the bank-owned payments operator co-owned by JPMorgan Chase, Bank of America, Citibank, Wells Fargo, Barclays, and BNY, is building the network to connect traditional payment rails with digital asset infrastructure for 24/7 settlement. The move reflects a broader effort by banks to keep deposits inside regulated banking channels while offering the speed and programmability of stablecoins.
US banks have intensified pushback against crypto market legislation that could allow stablecoin issuers to pay users yield on holdings. Jamie Dimon, CEO of JPMorgan, stated in May that the banking industry would “fight” against the current version of the Digital Asset Market Clarity Act (CLARITY Act). Dimon argued that crypto companies offering yield-bearing products should apply for banking charters instead.
The tokenized deposit network represents a direct competitive response to stablecoin expansion. Carl Grimstad, CEO of Lydian, said the announcement “shows that 24/7 programmable settlement is becoming increasingly important.” Grimstad noted that while banks have experimented with tokenization in controlled environments, public blockchain networks have settled value at global scale, raising questions about how value will move across fragmented bank ledgers, public chains, and digital assets.
The Clearing House initiative arrives as major exchanges accelerate tokenization efforts. On March 18, the SEC approved Nasdaq’s pilot proposal for tokenized securities trading. Three days later, on March 24, the New York Stock Exchange partnered with Securitize to develop blockchain-based trading infrastructure for tokenized shares of stocks and ETFs. Intercontinental Exchange (ICE), NYSE’s parent company, has also announced plans for a tokenized securities venue with 24/7 trading and instant settlement.
International regulators are moving faster. South Korea announced a tokenized deposits pilot project for government operational spending, with a full rollout scheduled for the fourth quarter of 2026.
Grimstad emphasized that banks are “reacting to where value is already moving.” The tokenized deposit network will allow institutions to compete with decentralized finance platforms by offering institutional-grade settlement speed while remaining within the traditional banking regulatory perimeter.
The Clearing House did not immediately respond to requests for additional comment on technical specifications or the exact regulatory framework the network will operate under.
