Banks Launch Digital Currency Network to Combat Stablecoins

Major U.S. banks, including JPMorgan Chase, Bank of America, and Citigroup, are collaborating to launch a shared tokenized deposit network by mid-2027. This initiative, facilitated by The Clearing House, aims to enable 24/7 blockchain-based settlement of bank deposits, directly challenging the growing influence of stablecoins like USDC and USDT. The banks' goal is to retain customer funds within the regulated financial system while offering the speed and efficiency of digital currencies for payments and transfers. This move signifies a significant adoption of blockchain technology by traditional finance and a strategic effort to prevent deposit erosion by crypto-native alternatives.