A group of top US banks, including JPMorgan and Citi, are forming a shared tokenised deposit network.
The initiative will connect blockchain networks with traditional payment systems, enabling large-scale clearing and settlement of tokenised commercial bank money.
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The Clearing House will operate the new platform.
In addition to JPMorgan and Citi, other participants in the initiative include Bank of America, Wells Fargo, HSBC, BMO Financial Group, Truist, and Fifth Third Bank.
J.P. Morgan Payments global co-head Max Neukirchen said: “A regulated market-infrastructure solution for clearing and settling tokenised deposits – built on the same proven principles as core payment settlement – is essential to keeping the payments ecosystem stable, resilient, and effective. This institutional solution will be a key building block for scaling on-chain payments and accelerating the momentum we’re seeing with our clients.”
The solution will unify established regulatory, operational, and settlement frameworks with the programmability and interoperability of blockchain technology.
It supports on-chain clearing and settlement of tokenised deposits between banks inside the existing banking system.
This delivers automated workflows, richer transaction data, and 24/7 settlement, , as per a statement by The Clearing House.
It also includes a connectivity layer that links blockchain activity to traditional fiat rails, including the RTP and CHIPS networks.
The platform will be accessible to financial institutions of all sizes across the US.
The initiative supports various use cases, including programmable treasury operations, real-time liquidity management, cross-border payments, agentic commerce, as well as digital asset settlement.
Participating banks and The Clearing House will continue working with industry stakeholders to develop future interoperability standards and expand use cases.
Bank of America head of Global Payments Solutions Mark Monaco said: “This initiative brings together the innovation of digital finance with the trust, scale, and settlement certainty of established bank payment infrastructure, creating an important foundation for future growth.”
