Banks Are Putting Deposits On Blockchain As Stablecoins Face A New Rival
Key takeaways
- Banks are moving deposits onto blockchains, challenging stablecoins and redefining digital‑money competition.
- JPM Coin launched November 2025
- Citi’s token services enabled a cross‑border payment with DBS last month
- USDC circulating $73.3 billion at Q2 2026
What happened
Traditional banks JPMorgan Chase (JPM) and Citigroup are testing blockchain‑based payment systems that let customers move deposits 24/7 on public ledgers. JPM launched JPM Coin on Coinbase’s Base network for institutional clients in November 2025, while Citi’s Citi Token Services enabled a cross‑border payment with DBS Bank last month. These moves let banks keep their deposit relationships while offering instant, on‑chain settlement similar to stablecoins.
Why it matters
Banks tokenizing deposits could erode the competitive edge of stablecoin issuers like USDC and USDT by keeping customers inside regulated ecosystems. It also signals that traditional finance is embracing the same technology that underpins cryptocurrencies, potentially reshaping payment infrastructure, deposit…
Short-term and longer-term
Short-term. Over the next few weeks, watch JPM and Citi for any expansion of their token services to retail or broader institutional clients.
Longer-term. In the coming months, the move could affect bank profitability through deposit economics and fee structures.