JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo are collaborating to develop a shared Regulated Settlement Network (RSN) through The Clearing House, with a planned launch in the f
JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo are collaborating to develop a shared Regulated Settlement Network (RSN) through The Clearing House, with a planned launch in the first half of 2027.
This network will enable 24/7 atomic settlement of tokenized deposits on a common blockchain, marking a significant shift in wholesale payments and indicating that major US banks aim to rival private stablecoins.
Exclusive: The largest U.S. banks plan to launch a tokenized deposit network next year, an attempt to stave off threats from crypto companies https://t.co/rQJwUGFdpU
— The Wall Street Journal (@WSJ) June 5, 2026
The RSN moves away from isolated bank-led blockchain initiatives, utilizing shared infrastructure to enhance liquidity and corporate adoption. The stablecoin market is currently valued at around $230Bn.
The target wholesale settlement market exceeds $2.2 trillion daily, addressing gaps in existing bank settlement systems and aiming to provide instant finality through blockchain technology.
SOURCE: CoinGeckoTokenized deposits differ from stablecoins in that they represent on-chain claims against actual bank deposits within the insured banking system, maintaining FDIC protections and regulatory status. In contrast, stablecoins are new instruments issued outside the traditional banking framework.
The RSN is built on this distinction, with the Clearing House serving as the network operator for tokenized deposit balances on a permissioned shared ledger.
The system features atomic settlement, facilitating instantaneous exchanges of payments and assets, thus addressing inefficiencies in wholesale markets and reducing banks’ need for large intraday liquidity buffers.
Currently, no blockchain technology partner has been selected, and the project is referred to as ‘the bridge’ or ‘the chain’ within participating institutions, reflecting ongoing discussions.
Early adopters such as JPMorgan are expected to be large multinational corporations with complex payment and liquidity management needs. Shahmir Khaliq from Citigroup emphasized the network’s aim to strengthen banks in capital markets and financing.
JPMorgan has established a strong blockchain presence with its Kinexys platform, which has been processing institutional payments via JPM Coin on a private chain since 2020. In 2026, the bank launched a deposit token on Coinbase’s Base, aimed at institutional clients.
The RSN expands this concept into a shared network for the entire US banking system, enhancing liquidity by allowing cross-institution settlements.
Citi’s Token Services platform has also piloted cross-border cash management and smart-contract trade finance on a private chain, validating the use cases for RSN. This shared ledger infrastructure represents a shift from proof of concept to actual applications.
The RSN offers advantages over stablecoins by keeping deposits within the insured banking system and adhering to KYC and AML regulations, while stablecoins excel in decentralized finance environments.
The industry anticipates coexistence: tokenized deposits for wholesale and corporate uses, and stablecoins for retail and DeFi applications.
David Watson, CEO of The Clearing House, noted that the industry is experiencing a pivotal shift in on-chain payments.
Although Bank of America’s Mark Monaco mentioned that demand for tokenized deposits isn’t overwhelming yet, the RSN is prepared for future scalability.
White House Backs Clarity Act PushWhite House crypto adviser Patrick Witt defended the Clarity Act, calling it a pro regulatory and pro enforcement bill.Witt argued the legislation would help the United States set digital asset standards rather than follow those created… pic.twitter.com/Q0aS01ti2V
— BSCN (@BSCNews) June 5, 2026
The RSN from JPMorgan is being developed in light of the Blockchain Regulatory Certainty and Innovation Act (CLARITY Act), which alerts banks to potential competition from yield-bearing stablecoins. These could undermine the appeal of insured deposits by offering interest, unlike the current non-interest-bearing USDC model.
The RSN is structured within existing banking regulations, treating tokenized deposits as traditional deposits, which gives it a regulatory advantage over private stablecoin issuers facing uncertainty.
The New York Fed’s Innovation Center has previously collaborated with major banks on the Regulated Liability Network, indicating awareness of the RSN’s development.
Additionally, the BIS supports shared ledger systems for tokenized deposits as a superior model for wholesale cross-border payments, reinforcing the RSN’s regulatory stability and alignment with central banks’ preferred directions.
The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
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