# JPMorgan and Citi to launch shared tokenized deposit network in 2027

**Published:** 2026-06-11T21:23:54.905Z  
**Topic:** Citi opens new route into private markets with tokenized share offering  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/936abcf4-6ea0-4373-8c1c-9294e865749e

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 RSN will use a permissioned shared ledger operated by The Clearing House to settle tokenized deposits instantly [1].  
- Tokenized deposits are on‑chain claims against actual bank deposits and retain FDIC protection, unlike stablecoins which are issued outside the traditional banking framework [1].  
- The network targets a wholesale settlement market of over $2.2 trillion daily and aims to reduce banks’ intraday liquidity buffers [1].  
- JPMorgan’s recent filing for a tokenized Treasury money‑market fund on Ethereum reflects a broader Wall Street push into blockchain‑based assets [2].  
- The RSN is being developed amid regulatory focus on stablecoins, including the CLARITY Act, which gives tokenized deposits a regulatory advantage [1].

## Building a shared ledger for wholesale payments  

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].

## Positioning against private stablecoins  

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].

## Why it matters  

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.

## Sources
1. Tokenist — [JPMorgan and Citi's 2027 Shared Tokenized Deposit Network](https://tokenist.com/jpmorgan-citi-2027-tokenized-deposit-network/)
2. CoinDesk — [JPMorgan files to launch new tokenized fund as Wall Street tokenization race heats up](https://www.coindesk.com/business/2026/05/12/jpmorgan-files-to-launch-new-tokenized-fund-as-wall-street-tokenization-race-heats-up)

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Cite as: TrendWatcher, "JPMorgan and Citi to launch shared tokenized deposit network in 2027", https://www.trendwatcher.in/article/936abcf4-6ea0-4373-8c1c-9294e865749e