US bank deposit token initiatives

The Clearing House, the bank-owned operator that clears more than $2 trillion daily across the US financial system, has selected blockchain infrastructure provider Quant to build the settlement layer for its On-Chain Money Initiative. Scheduled to become available to participating institutions in the first half of 2027, the network will allow 25 major US banks to clear and settle tokenized deposit transactions across a shared platform. Quant will supply the interoperability, orchestration, and transaction-management software that coordinates these movements.[1][2][3]

The mandate moves the On-Chain Money Initiative from a broad banking project, first announced in June 2026, toward a specific technology architecture. The initiative is backed by institutions including Bank of America, Citi, J.P. Morgan, Wells Fargo, and BNY. "Building interbank infrastructure for tokenized deposits requires proven technology that can scale," said Sal Karakaplan, Chief Strategy Officer of The Clearing House.

Historically, tokenized deposit efforts have remained siloed inside single bank platforms, meaning a deposit tokenized at one institution struggled to interact with one at another. The new network aims to break those walled gardens by providing a shared settlement layer that all 25 participating institutions can use together.[1][3][5]

Quant's technology will connect the blockchain-based network directly to the fiat payment rails that institutions already rely on, specifically the Real-Time Payments (RTP) network and the Clearing House Interbank Payments System (CHIPS). By linking on-chain transaction logic to these existing systems, the initiative avoids forcing banks into an entirely new payment universe. Instead, it layers programmable settlement on top of infrastructure that already carries legal and operational weight.[2][4][5]

A tokenized deposit remains a deposit liability of the bank that issued it, preserving traditional deposit relationships and regulatory oversight. The blockchain component simply changes how that claim can be recorded, programmed, and transferred. For corporate treasuries and financial institutions, this enables payments that settle immediately and transactions that trigger automatically once pre-agreed conditions are met, reducing manual intervention and delays.[4][5]

The integration of Quant's Overledger technology—which acts as an operating system connecting various blockchains with classic banking systems—will also serve as a commercial solution for banks that process through The Clearing House but do not yet have their own tokenized deposit capabilities. Quant will offer a Tokenised Deposits-as-a-Service (TDaaS) platform to give these smaller financial institutions a path to participate in the network without building bespoke infrastructure.[1][5]

Following the September 24 announcement, the cryptocurrency market reacted sharply, with Quant's native QNT token surging approximately 62% over 7 days to trade near $104.88 on September 26, with 24-hour trading volumes reaching $90 million. The token remains about 77% below its all-time high of $428.38, set in September 2021. However, neither The Clearing House nor Quant has specified whether the QNT token itself will play an economic or operational role on the new interbank network, leaving the token's direct utility in the project undefined.[5]

The project's next major checkpoint arrives in the first half of 2027, when the network is expected to open to participating financial institutions. The Clearing House has indicated that further details regarding specific use cases—such as cross-border payments, liquidity management, and digital asset settlement—will be released as development progresses.[2][4]

The project's next major checkpoint arrives in the first half of 2027, when the network is expected to open to participating financial institutions. The Clearing House has indicated that further details regarding specific use cases—such as cross-border payments, liquidity management, and digital asset settlement—will be released as development progresses.[2][4]