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Major U.S. banks plan a regulated settlement network for tokenized deposits, targeting wholesale payments and competing with stablecoins, with a 2027 rollout.
JPMorgan Chase, Citigroup, Bank of America and Wells Fargo are joining forces to build a Regulated Settlement Network (RSN) that will allow 24/7 atomic settlement of tokenized deposits on a common blockchain, with a launch slated for the first half of 2027 [1]. The network is positioned as a bank‑backed alternative to private stablecoins, keeping deposits within the FDIC‑insured system.
Key takeaways
The four banks will rely on The Clearing House as the network operator, creating a “shared infrastructure” that allows participants to hold tokenized deposit balances on a common permissioned ledger [1]. This design contrasts with earlier isolated, bank‑led blockchain projects by enhancing liquidity and corporate adoption. The RSN will enable “atomic settlement,” meaning payments and asset exchanges can occur instantly without the need for large intraday liquidity buffers that currently constrain wholesale markets [1]. While a blockchain technology partner has not yet been selected, the project is internally referred to as “the bridge” or “the chain,” indicating ongoing discussions about the underlying platform [1].
Tokenized deposits differ from stablecoins in that they represent on‑chain claims against actual bank deposits, preserving FDIC insurance and adhering to existing KYC/AML regulations [1]. Stablecoins, by contrast, are issued outside the traditional banking system and face regulatory uncertainty. JPMorgan’s Kinexys platform, which has processed institutional payments via JPM Coin since 2020, and its recent launch of a deposit token on Coinbase’s Base network, provide a foundation for the RSN’s broader rollout [1]. Citi’s Token Services platform has similarly piloted cross‑border cash management on a private chain, underscoring the shift from proof‑of‑concept to real‑world applications [1]. Industry leaders anticipate that tokenized deposits will serve wholesale and corporate needs, while stablecoins will continue to dominate retail and DeFi use cases [1].
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jun 11, 2026 · How we report
They are blockchain-based securities issued and held by Citi that allow investors to gain exposure to private company shares.
The product is designed for wealthy and institutional investors.
Unlike traditional structures that often rely on special-purpose vehicles and multiple intermediaries, Citi's approach uses blockchain technology to simplify the process and increase transparency.
The RSN represents a coordinated effort by the U.S. banking system to create a regulated, blockchain‑based settlement layer that can compete with private stablecoins and address inefficiencies in the $2.2 trillion daily wholesale market [1]. By keeping deposits within the insured banking system, the network gains a regulatory edge, especially as legislation such as the CLARITY Act seeks to clarify stablecoin oversight [1]. JPMorgan’s parallel move to file for a tokenized Treasury money‑market fund on Ethereum highlights a broader trend of Wall Street institutions leveraging blockchain to offer yield‑bearing, compliant products for both institutional and stablecoin clients [2]. The RSN’s success could reshape corporate liquidity management, reduce reliance on intraday funding, and set a precedent for future shared‑ledger initiatives in the financial sector.
The product launched with a transaction involving Kaleido, a digital asset and tokenization firm backed by Citi Ventures.