Banks prioritize on‑chain payments as client demand spikes

A survey of 199 banking professionals released in February 2026 found that 62% of institutions are pursuing on‑chain products driven by retail client demand, and 40% expect the greatest near‑term ROI from payments‑and‑settlement efficiency improvements【1】.

Why banks are moving onto the chain

The American Banker “2026 Value of On‑Chain” survey shows client demand is the top motivator for banks to enable public digital assets, loyalty tokens, and exchange services, with retail customers identified as the most on‑chain‑friendly segment【1】. Respondents also highlighted long‑term revenue potential, especially tokenizing deposits for both business and consumer clients (63% and 61% respectively). These findings suggest institutions view on‑chain technology as a way to retain and expand their consumer bases amid competition from non‑bank fintech firms.

Expected benefits and perceived risks

Payments and settlement efficiency emerged as the most valuable near‑term benefit, with 40% of banks expecting the strongest ROI from this area【1】. A broader 67% anticipate long‑term value from the same metric, alongside cost reduction (65%) and client retention (62%). Yet, while 64% agree that on‑chain payment rails can significantly lower transaction costs, an even larger share (57%) warn of heightened operational risk, reflecting a risk‑vs‑reward calculus that many banks are still navigating【1】.

Market segment focus

Retail customers dominate banks’ on‑chain strategies, with 35% of respondents flagging the mass market as a primary focus for future initiatives【1】. This aligns with the survey’s broader view that fast payments and lower transaction costs are the top consumer benefits expected from on‑chain products. However, regulatory uncertainty remains a barrier, as most institutions await clearer guidance before fully committing to decentralized finance integrations【1】.

What to watch

• Regulatory clarity – Monitor any forthcoming Fed or ABA statements on granting non‑bank entities access to central payment rails.
• On‑chain adoption milestones – Track the rollout of tokenized deposit services by banks that indicated >60% interest in the survey.
• Risk management frameworks – Watch for industry‑wide standards or best‑practice guidelines addressing the operational risks highlighted by 57% of respondents.

Banks see on‑chain technology as a near‑term lever for payment efficiency, but the balance between cost savings and heightened risk will shape how quickly the sector adopts these tools.