U.S. Major Banks Discuss Blockchain-Based Joint Deposit Network

U.S. major banks are discussing the establishment of a blockchain-based deposit network, raising the possibility of changes to the dollar payment infrastructure. MEXC Ventures has revealed that JPMorgan, Bank of America, Wells Fargo, and Citigroup are considering issuing 'tokenized deposits' on a single permissioned blockchain instead of fragmented systems. In this case, interbank settlements could become faster and more flexible than existing ACH or wire transfers. The crux of the discussion is to avoid the inefficiencies of individual banks' proprietary tokens and to build an interoperable shared infrastructure. In the joint network, each bank's deposit tokens would be issued and processed instantly on the same ledger. MEXC Ventures emphasizes that JPMorgan has processed over $4 trillion through its blockchain payment infrastructure, 'Kynexis,' interpreting this as an attempt to scale a proven technology to industry standards. 'Tokenized deposits' represent a shift of bank deposits into blockchain token form, while their legal nature remains that of bank deposits. The relationship with existing U.S. payment infrastructure is also noteworthy, as the joint deposit network is likely to operate by adding a functional layer on top of the existing systems. Potential applications could extend to trade finance between companies and real-time margin calls. The official launch date is yet to be determined, and stakeholder coordination is expected to be a key variable.

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