A consortium of seventeen major banks has announced plans for a shared tokenised deposit network, enabling member institutions to move tokenised versions of customer deposits across blockchain infrastructure twenty-four hours a day, seven days a week, with instant settlement. The network is targeting a launch in the first half of 2027 and will be operated by a payments company the member banks already jointly own.
The network will allow deposits to settle instantly between member banks. The payments company operating it was founded in 1853 to settle payments between member banks.
A Strategic Response
Industry observers have characterised the initiative as a direct response to stablecoins, which threaten to move customer deposits outside the regulated banking system. The network addresses this threat by moving deposits onto a blockchain while ensuring they do not go anywhere.
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Contributor guidelines ›"Our clients want the certainty of knowing their money is exactly where it has always been," one executive said. "Now it will be there on a blockchain."
The tokenised deposits will represent actual bank deposits recorded on distributed ledger infrastructure, an approach the consortium says preserves the existing regulatory framework, the existing accounting framework, and the existing deposits. A working group has been established to define the token standard. The working group's first deliverable is a paper.
Strong Corporate Demand Anticipated
The consortium expects strong initial demand from large multinational corporations, citing use cases including programmable treasury operations, real-time liquidity management, and cross-border payments. Member banks currently settle these payments through the same payments company.
"This is a significant step towards the instant settlement of the payments we already settle," a senior treasury professional said.
Path to Launch
Launch is targeted for the first half of 2027, subject to regulatory engagement, member onboarding, and technical integration. A pilot phase will begin once the design phase concludes. The design phase will conclude once the working group reports. The working group will report following further alignment across member institutions.
"The timeline is ambitious," an industry observer said. "But the industry has never been more aligned on the importance of alignment."
When asked what customers would notice once the network goes live, the consortium confirmed that deposits would remain in customer accounts, as before. No further changes are expected.