JPMorgan, Bank of America, Citi and other major financial institutions are building a tokenized deposit network targeting a 2027 launch, marking one of the largest coordinated moves by traditional banks into blockchain-based payments infrastructure.
What the tokenized deposit network involves
On April 30, 2026, FIS and a group of leading financial institutions announced plans to build their own digital tokenized money network. The consortium includes JPMorgan, Bank of America and Citi, according to CoinDesk reporting from the same date.
The network is designed for institutional use, not retail consumers. It aims to bring tokenized commercial bank deposits onto shared rails, allowing faster settlement between participating banks.
The target timeline is 2027, meaning the project is in its planning and development phase. No live product exists yet.
Why tokenized deposits differ from stablecoins
A tokenized deposit is a digital representation of a commercial bank deposit on a blockchain or distributed ledger. Unlike stablecoins, which are issued by non-bank entities and backed by reserves, tokenized deposits remain liabilities of regulated banks.
This distinction matters for institutional payments. Banks can settle obligations directly using tokenized versions of deposits they already hold, removing the need for intermediary clearing steps that currently slow cross-border and interbank transfers.
JPMorgan has prior experience in this space. The bank has operated a USD deposit token for institutional clients, giving it a foundation to build on within a broader multi-bank network. As banks explore ways to modernize payment rails, efforts like these sit alongside developments in areas where blockchain-native projects are also competing for institutional attention.
Tokenized deposits also differ from central bank digital currencies. CBDCs would be direct liabilities of a central bank, while tokenized deposits keep commercial banks in their traditional intermediary role.
What could define or delay a 2027 rollout
Several factors will determine whether the network launches on schedule. Interoperability is a primary challenge: participating banks must agree on shared technical standards, governance rules and compliance frameworks.
The Bank for International Settlements has been exploring related concepts through Project Agora, which examines how tokenized commercial bank money could work alongside central bank money in cross-border payments. The lessons from that project could shape how this private-sector network handles settlement finality and regulatory alignment.
Regulatory approval across multiple jurisdictions adds complexity. Each participating bank operates under different national regulators, and a shared tokenized deposit network would need consistent legal treatment of on-chain settlement across borders.
The 2027 date should be understood as a target, not a commitment. In the broader digital asset space, where projects ranging from established tokens like ETH and XRP to newer entrants compete for market share, a bank-backed tokenized deposit network would represent a fundamentally different approach, one built on existing regulatory frameworks rather than decentralized governance.
What happens between now and 2027 will depend on whether these banks can resolve governance structures, finalize technical architecture and secure regulatory clarity in their primary operating jurisdictions.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
