Bank of America Joins The Clearing House Push for Tokenized, 24/7 Bank-Deposit Payments

Bank of America has signed on to a new bank-led effort to move tokenized deposits over blockchain-based infrastructure while keeping the core of the banking system in place. The initiative was announced by The Clearing House on June 5, 2026, as part of a broader push by large U.S. banks to support faster, around-the-clock payments and settlement using regulated bank money.

The Clearing House said the planned solution will connect “on-chain activity with traditional payment rails” and enable the clearing and settlement of tokenized commercial bank money at scale. In its description of the program, The Clearing House framed the model as combining the existing regulatory, operational, and settlement frameworks of core payment infrastructure with blockchain interoperability and programmability. It also said the approach will support automated workflows and “24/7 settlement” for tokenized deposits between banks inside the established banking framework.

In comments included in The Clearing House announcement, Bank of America positioned tokenization as a client-experience opportunity rather than a guaranteed immediate demand driver. Mark Monaco, head of global payments solutions, said the bank sees “significant potential” for tokenization, including tokenized deposits, to improve client outcomes. A separate report also quoted Monaco acknowledging that clients are not “beating down the door” for tokenized deposits, with adoption expected to take time as new capabilities mature.

Tokenized deposits are typically treated as digital representations of traditional bank deposits, issued by regulated financial institutions. The distinguishing claim in The Clearing House’s framing is that tokenized deposits preserve the “essential” role banks play in extending credit and supporting economic growth, while adding features associated with digital payments. CoinDesk similarly described tokenized deposits as a way to put bank customers “onchain” without using crypto stablecoins as the underlying payment instrument, emphasizing that the funds would remain inside the banking system rather than moving into general crypto wallets.

The timing and urgency of the effort reflect a wider competitive dynamic in payments and liquidity. CoinDesk reported that JPMorgan Chase, Bank of America, Citigroup and other major lenders plan to launch the shared tokenized deposit network through The Clearing House by the first half of 2027, explicitly to compete with stablecoins such as Circle’s USDC and Tether’s USDT. The article pointed to bank concerns that stablecoins could accelerate deposit migration into crypto rails, and cited an estimate from Jeffries projecting a 3% to 5% runoff in core deposits over five years and about a 3% decline in average bank earnings.

The Clearing House also tied the initiative to its existing real-time payments and high-value settlement capabilities. It said the solution includes a connectivity layer that links blockchain activity with traditional fiat rails, naming RTP® and CHIPS® networks. The RTP network is described by The Clearing House as an instant payments infrastructure that enables transactions up to $10 million with 24/7/365 availability. CHIPS is described as the largest private-sector USD clearing and settlement network, clearing and settling $2.2 trillion in domestic and international payments each business day.

Still, key implementation details remain limited in public materials. PYMNTS reported that a blockchain vendor has not yet been chosen, underscoring that the initiative is likely still in an early build stage for operational deployment. What to watch next includes any follow-on disclosures from The Clearing House or participating banks on participating institutions, technical architecture, and the timetable for scaling beyond pilots into broader market use.