JPMorgan, Citi and other major U.S. banks are reportedly planning a joint tokenized deposit system, according to a Wall Street Journal report. The initiative would mark one of the most significant moves by traditional financial institutions into blockchain-based payment infrastructure.
What the WSJ report says about the bank-led tokenized deposit plan
Several of the largest U.S. banks, including JPMorgan and Citi, are exploring the creation of a shared system for tokenized deposits, according to reporting first covered by the Wall Street Journal. The effort reportedly involves coordinating across multiple institutions to build a unified digital money framework.
The reported plan centers on a tokenized deposit system rather than a finished product launch. No official timeline or confirmation has been released by any of the named banks, and the details remain limited to what the WSJ has disclosed.
This distinguishes the initiative from standalone stablecoin projects or individual bank experiments. A multi-bank effort, if confirmed, would represent a coordinated institutional bet on blockchain rails for moving traditional bank deposits.
Why tokenized deposits matter for banks and digital assets
Tokenized deposits are bank deposit claims represented on blockchain infrastructure. Unlike stablecoins issued by non-bank entities, tokenized deposits remain liabilities of regulated banks, which means they carry the same protections and regulatory standing as conventional deposits.
The Brookings Institution has outlined key differences between payment stablecoins and tokenized bank deposits, noting that the two models differ in issuer type, regulatory treatment, and settlement mechanics. Tokenized deposits settle within existing banking frameworks while leveraging blockchain for speed and programmability.
For large banks, the appeal lies in settlement efficiency. Blockchain-based infrastructure can enable near-instant clearing between institutions, reducing the friction and delay of legacy interbank payment systems. This is especially relevant for cross-border transactions and large-value transfers, areas where projects like Visa’s recent stablecoin settlement tests on the Canton Network have also shown institutional interest.
Citi has published research on how tokenized payments enable real-time liquidity, suggesting the bank views this technology as a strategic priority rather than an experimental side project.
What the reported move could signal for crypto adoption
Interest from banks of this scale reinforces that blockchain-based financial infrastructure remains a serious institutional theme. The reported initiative sits alongside broader trends in institutional digital asset engagement, including recent volatility driven by institutional Bitcoin trading activity and growing discussion around how traditional finance intersects with Bitcoin’s evolving capital stack.
Any system backed by JPMorgan, Citi and peers would likely operate within permissioned, regulated frameworks. This positions tokenized deposits as a complement to, rather than a replacement for, existing crypto-native stablecoins and decentralized payment rails.
The market significance of the reported plan depends on formal confirmation, regulatory positioning, and rollout details that have not yet been disclosed. Until the participating banks issue official statements, the WSJ report remains the sole source for the initiative’s scope and structure.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
