CoinDesk
JPMorgan Chase, Bank of America, Citigroup and other major US lenders plan to launch a shared tokenized deposit network through The Clearing House by the first half of 2027, enabling round-the-clock blockchain-based settlement of bank deposits. The move is a direct competitive response to the rise of USDC and USDT, which have gained traction in cross-border payments, crypto trading, and increasingly in savings products.
Why it matters
The initiative marks a structural inflection point: America's largest regulated institutions are voluntarily moving onchain, not to embrace public crypto networks, but to defend their deposit base. Jefferies estimated in March that stablecoins could drive a 3% to 5% runoff in core deposits over the next five years, shaving roughly 3% off average bank earnings. TD Securities VP Reid Noch framed the competitive dynamic bluntly: following the GENIUS Act, a race is now underway between stablecoins, tokenized deposits, and tokenized money market funds to become the dominant onchain cash instrument.
Market impact
For USDC and USDT, the Clearing House network represents a well-capitalized, compliance-native challenger targeting the corporate payments and treasury segment — the highest-value slice of the stablecoin market. Unlike public stablecoin networks, tokenized deposits keep funds inside the regulated banking system, which Noelle Acheson, author of "Crypto is Macro Now," argues could appeal strongly to corporate treasurers already operating within existing compliance frameworks. The outcome will likely determine whether stablecoins remain the default onchain cash layer or get pushed toward retail and DeFi while banks reclaim institutional flows.
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