A group of the nation’s largest banks announced today that the Clearing House is launching an initiative to enable the clearing and settlement of tokenized deposits between banks.
Tokenized deposits offer the benefits of digital payments while preserving the essential role banks play in extending credit and supporting economic growth, according to a statement by the Clearing House. The initiative will include:
- On-chain clearing and settlement of tokenized deposits between banks within the established banking framework, supporting automated workflows, richer transaction data and 24/7 settlement
- A connectivity layer linking blockchain-based activity with established fiat rails, such as the RTP and CHIPS networks, to facilitate movement between digital and traditional commercial bank money
The initiative will support a broad range of use cases, including programmable treasury operations, real-time liquidity management, cross-border payments, agentic commerce applications, digital asset settlement and automated financial workflows, the Clearing House added.
