America’s largest banks are building a new digital currency network to stop a massive deposit drain

America’s biggest banks are launching tokenized deposits to compete with stablecoins, opening a new front in the race to become the dominant form of cash on blockchain networks.\nWhat to know : JPMorgan Chase, Bank of America, Citigroup and other major lenders plan to launch a shared tokenized deposit network through The Clearing House by the first half of 2027, enabling round-the-clock blockchain-based settlement of bank deposits. The initiative is designed to counter the rise of stablecoins such as USDC and USDT by keeping customer funds within the regulated banking system while offering similar speed and efficiency for payments and transfers. Analysts say the move underscores both banks’ growing concern that stablecoins could erode core deposits and the broader trend of traditional finance adopting blockchain technology, even as it maintains tighter control than public crypto networks.