The Clearing House, the payments network owned by 25 of the largest U.S. banks, said June 5 it is rolling out a system that clears and settles tokenized deposits around the clock on a blockchain. The service links into existing high-speed rail systems including the RTP network and CHIPS, giving banks a programmable dollar that never sleeps — and that stays inside the regulated deposit system.
What tokenized deposits actually are
Tokenized deposits are bank liabilities — the same commercial bank money in a checking account, but wrapped in software that allows instant, automated settlement 24 hours a day. They’re different from stablecoins, which move dollar claims outside the deposit system entirely. The Clearing House’s new infrastructure keeps settlement inside the bank-owned network, settling on-chain while connecting to traditional fiat rails.
Why banks need their own token
Banks are racing to offer tokenized deposits for two reasons. First, they’re defensive: stablecoins are siphoning deposits as users park dollars in crypto wallets instead of bank accounts. Second, stablecoins have proven there’s real demand for tokenized dollars — a market banks can’t afford to ignore. By issuing their own programmable deposits, lenders can offer similar convenience while keeping control of the money and the customer relationship.
The regulatory line in the sand
Congress drew a clear boundary with the GENIUS Act, the payment stablecoin framework that passed earlier this year. The law requires stablecoin issuers to hold one-to-one reserves and bans them from paying interest solely for holding the coin. Crucially, it explicitly excludes tokenized deposits — deposits recorded using distributed ledger technology — from the definition of a payment stablecoin. That means tokenized deposits live under existing banking regulation, not under new stablecoin rules.
Citi’s forecast: deposits versus stablecoins
Research from Citi predicts stablecoin issuance could hit $1.9 trillion by 2030 in a base case, or as much as $4 trillion in a bull scenario. But the same report forecasts that transaction volumes from bank-issued tokens — tokenized deposits — may actually surpass stablecoin volumes by that same year. For the banks behind The Clearing House, the bet is that depositors will choose a regulated token over an unregulated one if the user experience is comparable.
A separate token service for account security
The Clearing House also runs a separate product called the DDA Token Service, part of its Open Banking lineup. That service replaces customer account numbers with tokens for compliance and security when banks share data with third parties. It’s not about settlement — it’s about protecting account information. The two products together show the company’s broader push: keep banks in control of digital money at every layer.
The immediate question is whether the rollout moves fast enough to stop deposits from bleeding to stablecoins — and whether the banking giants can convince customers that a bank-issued token is just as convenient as one without a bank attached.
