JPMorgan, Citi and Bank of America Plan Shared Blockchain Network to Counter Stablecoin Growth

Leading American banks including JPMorgan, Citigroup and Bank of America are working on a shared blockchain-based payment network designed to modernize bank deposits and respond to growing competition from stablecoins.

The planned system is expected to launch by mid-2027 and will be operated by The Clearing House, a payments infrastructure company owned by major US banks. The project is being described internally as “the bridge” or “the chain,” according to industry reports.

Tokenized Deposits Move Traditional Money Onto Blockchain

The system will convert customer bank deposits into digital tokens that represent real money held within regulated banks. These tokenized deposits can then be transferred instantly on a blockchain network, allowing faster and more flexible payments while keeping funds inside the traditional banking system.

Banks Respond to Stablecoin Competition

The initiative comes as stablecoins continue to grow in popularity as dollar-pegged digital assets issued by crypto firms outside the banking system. Bank executives are increasingly concerned that widespread adoption of stablecoins could reduce traditional deposits, which banks rely on for lending and credit creation.

A pending US legislative proposal, the CLARITY Act, could further accelerate stablecoin adoption by allowing certain issuers to offer returns and faster payment features. This has increased pressure on banks to offer competing blockchain-based services.

Goal Is Faster Payments and Global Liquidity Tools

The new tokenized deposit network is expected to support real-time payments, programmable treasury functions and improved cross-border settlement for large corporations. Industry leaders say the system could significantly reshape how commercial banking operates.

Clearing House CEO David Watson described the initiative as a major shift toward onchain payment infrastructure, calling it a “radically different” model for the future of financial transactions.