🚨 U.S. banks tap The Clearing House to build a tokenized deposit network for interbank payments 🚨
The Clearing House is set to operate a tokenized deposit network for U.S. banks, giving the country’s biggest financial institutions a new rail for moving tokenized commercial bank money between banks.
🔑 Key points
🔹 The Wall Street Journal reported that The Clearing House will run the tokenized deposit network for U.S. banks.
🔹 The Clearing House already operates major payment systems including CHIPS, EPN, and RTP, making it a natural operator for the new network.
🔹 It is owned by 21 banks, including JPMorgan, Citi, Bank of America, and Wells Fargo, plus multinational shareholders such as TD, BMO, Barclays, Deutsche Bank, HSBC, and Santander.
🔹 Many large U.S. banks already have blockchain-based tokenized deposit systems for their own corporate clients, but those systems mostly do not work for interbank transfers.
🔹 The new network is meant to support interbank payments and may be available to banks across the U.S., though the exact participant model is still unclear.
🔹 The technology provider has not yet been selected.
🔹 Other tokenized deposit efforts are also emerging in the U.S., including Cari Network and Hazel Network from Vantage and Custodia Bank.
🎯 Bottom line: Big U.S. banks are moving tokenized deposits from pilot territory into shared market infrastructure.
https://www.ledgerinsights.com/us-banks-tap-the-clearing-house-for-tokenized-deposit-network/