Major U.S. banks, including JPMorgan and Citigroup, are planning to launch a new tokenized deposit network next year. This initiative aims to compete with emerging threats from cryptocurrency companies and stablecoins. The network will integrate traditional banking payment systems with digital asset infrastructure and will be managed by the Clearing House, a company co-owned by several large banks. The move reflects banks' efforts to innovate amid increasing competition in the financial sector.

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https://www.wsj.com/finance/banking/jpmorgan-citi-and-big-banks-plan-new-tokenized-deposit-system-to-answer-crypto-6b2d696b

JPMorgan, Citi and Big Banks Plan New Tokenized Deposit System to Answer Crypto

The new network could help banks contend with a wave of new competition from stablecoins and crypto firms

Gina Heeb

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Vicky Ge Huang

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Commuters walk past a Citibank branch with ATMs in Midtown Manhattan. A company called the Clearing House, which is co-owned by large commercial banks including Citigroup, will operate the network.Janice Chung for WSJ

The largest U.S. banks plan to launch a tokenized deposit network next year, an attempt to stave off threats from crypto companies that are seeking to wade deeper into their territory under President Trump.

The new network will connect traditional payment rails with the infrastructure that digital assets run on. It will be operated by a real-time payment network company called the Clearing House, which is co-owned by JPMorgan Chase JPM0.48%increase; green up pointing triangle, Bank of America BAC-0.11%decrease; red down pointing triangle, Citigroup C-1.98%decrease; red down pointing triangle, Wells Fargo WFC0.39%increase; green up pointing triangle and other large commercial banks.

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Exclusive | JPMorgan, Citi and Big Banks Plan New Tokenized Deposit System to Answer Crypto

JPMorgan, Citi and Big Banks Plan New Tokenized Deposit System to Answer Crypto

The new network could help banks contend with a wave of new competition from stablecoins and crypto firms

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