David Watson, President and CEO of The Clearing House (TCH), used a Sibos interview yesterday to set out how the design of the organization’s tokenized deposit initiative fits together. It has two tracks. Last week it announced Quant as technology partner on one track that launches in the first half of 2027. The second is a Layer 2 blockchain, with no vendor or date yet announced.
The initiative is designed not as a shared token but as interoperability between individual bank tokenized deposit platforms. How the two tracks relate, and what each is for, is where the story gets interesting as well as Watson’s thoughts on stablecoins. Both are explored later.
Watson’s broader theme was coexistence. Multiple payment rails will continue to serve different purposes, and technology will increasingly choose the optimal one on the client’s behalf. “What’s right for the cash leg of a DVP securities settlement might be different than what’s right for a PVP treasury payment, which may be different for an international P2P,” he said, adding that some might want the stablecoin route for P2P.
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