Major banks back Clearing House initiative for tokenized deposits

A coalition of major financial institutions is moving to establish what could become a foundational layer for bank-led digital money movement in the United States, announcing a new initiative designed to connect blockchain-based financial activity with traditional banking infrastructure.

The effort, unveiled June 5, 2026, by The Clearing House and supported by a broad group of large banks, aims to enable clearing and settlement of tokenized commercial bank deposits at scale while maintaining the regulatory and operational framework of the existing banking system.

The initiative would allow tokenized deposits to move between participating banks using on-chain technology while also linking blockchain-based transactions to established payment rails such as RTP and CHIPS.

Supporters say the model could help financial institutions deliver programmable payments, automated treasury operations, real-time liquidity management and other emerging digital financial services without relying on stablecoins or nonbank-issued digital assets.

Scaling on-chain money movement

“The banking industry has long provided the trusted infrastructure that underpins the movement of money throughout the global economy,” David Watson, president and chief executive officer of The Clearing House, said in the announcement. “The Clearing House is proud to help banks scale on-chain money movement by extending the safety, resiliency, and settlement certainty of regulated bank payment rails.”

The initiative reflects growing momentum among financial institutions exploring tokenization as banks seek ways to modernize payments infrastructure while retaining the central role commercial banks play in credit creation, compliance and settlement.

Unlike cryptocurrencies that operate largely outside the banking system, tokenized deposits represent traditional commercial bank money issued within regulated banking frameworks. Advocates argue the approach combines blockchain programmability and interoperability with the stability and trust associated with bank deposits.

Participating institutions include Bank of America, BMO Financial Group, BNY, Citi, Citizens Financial Group, Fifth Third Bank, HSBC, JPMorgan Chase, PNC Bank, TD Bank, U.S. Bank and Wells Fargo, among others.

Interoperable standards, shared infrastructure

Executives from participating banks emphasized the need for interoperable standards and shared infrastructure as digital asset activity expands. Several pointed to rising demand for 24/7 settlement capabilities, richer transaction data and faster cross-border payments.

Max Neukirchen, global co-head of payments at JPMorgan Payments, described a regulated clearing and settlement system for tokenized deposits as “essential to keeping the payments ecosystem stable, resilient, and effective.”

The Clearing House said the initiative will be available to financial institutions across the United States, potentially allowing banks of varying sizes to participate in blockchain-enabled payment ecosystems through a common framework.

The organization and participating banks said they will continue collaborating with industry stakeholders on interoperability standards, implementation models and additional use cases as development progresses.

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