Major US banks plan deposit token network to counter stablecoins

Major U.S. banks including JPMorgan, Bank of America, Citigroup, and Wells Fargo are pushing to build a deposit token network for real-time payments, with a target launch in the first half of 2027, The Wall Street Journal reported. The move is a response to the expansion of crypto companies and stablecoins. The new network, which will be operated by the bank-owned payments company The Clearing House, is designed to connect existing payment systems with crypto infrastructure. The report noted that banks favor deposit tokens over stablecoins because they are essentially regulated bank deposits on a blockchain, allowing them to maintain their current regulatory frameworks and credit risk profiles. While banks may issue stablecoins in the future if demand is sufficient, some have questioned their utility beyond cross-border payments.