US banks go build tokenized deposit network by 2027 vs USDC/USDT
US banks wey include JPMorgan Chase, Bank of America, and Citigroup dey plan joint tokenized deposit network through The Clearing House, dem dey target make e launch for first half of 2027. The tokenized deposit network go carry regulated bank deposits go blockchain rails and support 24/7 settlement, and the digital token go represent bank liability wey go remain inside the banking system.
Dem dey present the initiative as response to stablecoin pressure. Circle’s USDC and Tether’s USDT dey dominate on-chain cash for crypto trading and cross-border payments. Banks dey fear say customers fit shift funds from bank accounts into crypto wallets, pressure “core deposits.”
One Jefferies estimate wey article mention project say stablecoins fit cause 3%–5% deposit runoff over five years and reduce average bank earnings by about 3%. Traders fit see short-term sentiment swings around USDC/USDT, while the long-term risk na demand rotation toward bank-backed tokenized rails for corporate payments and treasury operations instead of crypto-native stablecoin settlement.
Bearish
Di tori nyuz dem show say na bank-backed alternative to stablecoins. By dem launch tokenized deposit network wey dey settle 24/7, banks wan make money remain for inside regulated system, fit reduce di need for USDC/USDT as “on-chain cash” for some corporate payments and treasury workflows. That kain framing fit put pressure for USDC/USDT sentiment short-term. Long-term, if adoption grow, e fit divert some stablecoin use comot from crypto-native rails.
But di article talk say na competition, no be to shut down stablecoin markets direct. So di likely effect on USDC/USDT price na more about sentiment/usage risk than immediate liquidity break, make overall stance bearish but no too extreme.