The Wall Street Journal reported that the Clearing House (TCH) will operate a tokenized deposit network for US banks. They are the logical operator given they already run multiple payment systems including CHIPS, EPN and RTP. TCH is owned by 21 banks including JP Morgan, Citi, Bank of America and Wells Fargo. Additionally, it has multinational shareholders such as the two big Canadian banks TD and BMO, as well as Barclays, Deutsche Bank, HSBC and Santander, meaning there is future potential for cross border payments.
Many of the largest US banks already have blockchain-based tokenized deposits enabling large corporate clients to make 24/7 payments. For the most part these only work for their own customers rather than for interbank payments, which the TCH solution will support. WSJ reports it will be available to “banks across the U.S.”, but it remains to be seen whether that means broad access or a more restricted participant model like CHIPS. The technology provider has not yet been selected (more later).
There are already multiple tokenized deposit networks emerging in the US, mainly targeting mid-size or community banks, these include the Cari Network and the Hazel Network founded by Vantage and Custodia bank.
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