America’s largest banks are building a new digital currency network to stop a massive deposit drain
America’s biggest banks are launching tokenized deposits to compete with stablecoins, opening a new front in the race to become the dominant form of cash on blockchain networks.
AI Summary
JPMorgan Chase, Bank of America, Citigroup and other major lenders plan to launch a shared tokenized deposit network through The Clearing House by early 2027, enabling round-the-clock blockchain settlement to compete with stablecoins. The initiative aims to keep customer funds within the regulated banking system while offering similar speed and efficiency for payments. Analysts see it as a sign that banks are increasingly adopting blockchain technology to counter the threat stablecoins pose to core deposits.