Author
Ahmed Barakat
Author
Share it
Facts Checked by
CryptoNews Editorial Team
Author
JPMorganCiti, Bank of America, and Wells Fargo are building a Tokenized Deposit Network to support stablecoins. It goes through The Clearing House, is looking at the implementation of the first half of 2027, and the Federal Reserve is the most important audience.
The mentioned features are successful: stability 24/7 at the same time, possible payments, blockchain money transfer.
The real control is control: if the banks have a stable part, there is no political or systematic opening of the CBDC issued by the government, and there is no air left for the stablecoin issuers in the payment price.
Note: The best crypto to change your profile
Stablecoin Killer? Tokenized Deposits vs. Fedwire, What TDN Really Does and Why Banks Want It Now
Tokenization is not a new phenomenon. It’s a regular bank deposit recorded on a shared ledger instead of a closed bank register, the same credit risk, the same care, the same accounting standards. What changes is about stability.
Fedwire and RTP work around batch or real-time windows with strict cut-offs. TDN is closed on chains, continuously, including weekends and federal holidays.
This difference is where stablecoins have built a corporate utility. The Treasury teams running the USDC’s rural areas don’t care about money; they care that the Circle trains run on Sundays at 2 am and JPMorgan doesn’t.
TDN closes this gap without moving the dollar outside of the regulated banking system.
The building is already in pieces. JPMorgan’s Kinexys platform handles corporate payments via JPM Coin on a private blockchain.
The bank also launched a deposit token on Base, Coinbase’s Layer 2, for institutional customers in early 2026, tracking limit payments, intraday payments, and contingent payments. Citi to Token Services manages real-time digital transfers between New York, London, and Hong Kong.
The TDN is a network that connects these unregulated banks into a single financial institution, the Regulated Settlement Network for US banks.
David Watson, CEO of The Clearing House, said the project is “Great move for renters” and that companies are facing a “very different” The future revolves around on-chain payments.
That arrangement is correct. It is also strategically useful because the banks that are providing these networks are the same entities that would be most vulnerable to a government-run CBDC or stablecoin that holds corporate dollars.
CBDC End-Run: Why the Regulatory Period Wasn’t an Accident
Congressional appetite for CBDC issued by the Federal Reserve is close to zero. Apprehensions over censorship, political claims, and opposition from both groups have stalled any push for a CBDC. Banks know this, and TDN is tested to use it.
If the private sector offers 24/7 fixed interest rates through bank-controlled banks, the argument for the principle of the government-issued dollar falls away.
The Fed achieves modern payment methods without political responsibility by issuing CBDC for sale. Banks can keep deposits within their system. Stablecoin providers are squeezed. Everyone in the regulated banks wins, except for Tether and Circle.
The The CLARITY Act will advance through Washington adds the second force vector. Banks are still opposed to the CLARITY Act, which leaves room for fixed interest rates on stablecoins, which would directly compete with bank deposit rates.
The active TDN makes this battle easier: if banks are already offering software, blockchain-native deposits and FDIC-guaranteed equivalents, the politics of allowing issuers of non-bank stablecoins to pay yields is weakened.
Citi’s chief operating officer, Shahmir Khaliq, created the network as “an alternative that strengthens well” the functions that banks perform in finance, money management, and capital markets. That is not a product description. That is the claim of the region.
What the banks are actually protecting is the liquidity layer, the process by which the dollar flows from the Federal Reserve to the real economy. If the layer that tokenizes on the railway bank, they keep the gate position in the blockchain-financial system.
Note: The best deals before the sale starts
