Banks build tokenized deposit network to rival stablecoins

America’s biggest banks said they will launch a shared tokenized deposit network through The Clearing House by the first half of 2027. The project would let bank deposits move across blockchain infrastructure with round-the-clock settlement, giving traditional bank money some of the same capabilities that have helped stablecoins gain traction.

Stablecoins—chiefly Circle’s USDC and Tether’s USDT—currently dominate onchain cash, used for trading, cross-border payments and growing savings products. Banks worry deposits could migrate into crypto wallets, so tokenized deposits offer a way to bring customers onchain without losing control: a customer’s bank deposit would be represented as a digital token that can move across blockchain rails while the funds remain inside the banking system.

Proponents say tokenized deposits could address long-standing payment frictions.

United States

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