Banks spent a year lobbying against stablecoin yield. Last week they stopped arguing and started building. JPMorgan, Citi, BofA, Wells Fargo, and 13 more banks just announced a shared tokenized deposit network through The Clearing House, targeting an H1 2027 launch. It’s Wall Street’s most coordinated answer to stablecoins yet: a response to the CLARITY Act’s yield fight and a deposit-flight scenario worth $3.7T in destroyed deposits. [NEWS] [RELEASE]

The Signal: Tokenized deposits won’t erase stablecoins. But they will push them out of enterprise B2B rails. JPMorgan already runs JPMD. HSBC, Citi, and BNY are building theirs. Expect three layers to co-exist: bank consortium tokens for wholesale settlement, regional networks like Cari for the mid-market, and USDC and USDT for permissionless global commerce, remittances, and DeFi.

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What happened

The Clearing House (TCH), the payments operator owned by 25 of the largest US banks, will run the network. It connects traditional rails (RTP, CHIPS) to blockchain infrastructure for 24/7 atomic settlement, with use cases spanning programmable treasury, real-time liquidity, cross-border payments, and agentic commerce. “A big move for the banks,” TCH CEO David Watson told the WSJ; the industry faces a “radically different” future in on-chain payments. The release names 17 participants, including BNY, HSBC, PNC, Truist, TD Bank, and U.S. Bank. One detail buried in the coverage: no blockchain partner has been selected yet. The build, in any meaningful sense, has not started. [RELEASE] [ANALYSIS]

The whole perimeter is mobilizing. In March 2026, five regional banks (Huntington, First Horizon, M&T, KeyBank, Old National) holding $600B+ in combined deposits launched the Cari Network on ZKsync, with a pilot set for Q3 2026. Eugene Ludwig, the former Comptroller of the Currency, founded it. In 2025, North Dakota partnered with Fiserv for a state-level token. The banking sector is fully mobilizing to keep enterprise capital strictly within the FDIC-insured perimeter. [NEWS]