JPMorgan and Citi Build a Blockchain Rival to Stablecoins

In Brief

• Major U.S. banks are developing a blockchain-based deposit network.
• The system would enable tokenized deposits and 24/7 settlement.
• The effort could create a new competitor to stablecoins.

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America’s largest banks are reportedly preparing a blockchain-based deposit network that could reshape how money moves through the traditional financial system. The project would allow regulated bank deposits to operate on distributed ledger infrastructure and offer round-the-clock settlement capabilities. The effort arrives as stablecoins gain momentum and financial institutions look for ways to keep digital dollar activity inside the banking sector.

Wall Street Banks Build Their Own Blockchain Network

According to reports, the project is being developed through The Clearing House, a payments network owned by many of the participating banks.

The proposed system would tokenize commercial bank deposits and enable them to move across distributed ledger networks with continuous settlement availability. Unlike traditional payment systems that rely on banking hours and cut-off times, tokenized deposits could operate 24 hours a day throughout the year.

Stablecoins Face New Competition

Tokenized deposits differ from stablecoins in a key way. Rather than being issued by crypto companies, tokenized deposits represent direct claims on commercial bank deposits. They remain fully integrated within existing banking regulations and deposit structures.

Several major banks have already begun building similar infrastructure independently. JPMorgan has expanded its blockchain-based deposit initiatives through JPMD, and Citigroup has developed tokenized payment and liquidity services aimed at institutional clients. The new consortium would take those efforts a step further by creating a shared network across multiple banking giants.

The development also highlights a more extensive shift taking place across traditional finance. Just days after Mastercard announced support for stablecoin-based settlement and Charles Schwab expanded crypto-related trading products, some of the world’s largest banks are now investing heavily in blockchain payment rails of their own.

The news reinforces a trend that has become increasingly difficult to ignore. Traditional financial institutions may not be replacing their existing systems overnight, but they are steadily adopting the same underlying blockchain technology that first emerged from the crypto sector.

Whether tokenized deposits ultimately compete with stablecoins or operate alongside them, one thing is becoming clear. Wall Street is no longer debating whether blockchain belongs in finance. It’s actively building on top of it.

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