A group of leading banks unveiled a digital payments initiative that connects on-chain activity with traditional payment rails and enable clearing and settlement of tokenized commercial bank money. The solution will combine the existing regulatory, operational and settlement frameworks of established payment market infrastructure with the programmability and interoperability of blockchain-enabled financial activity.
The initiative will be operated by The Clearing House, a U.S.-based payments company that provides critical payment networks and is owned by 25 of the nation’s largest financial institutions. The initiative will deliver:
- 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; and
- 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.
Tokenized deposits offer the benefits of digital payments, including programmability and interoperability, while preserving the essential role banks play in extending credit and supporting economic growth. This offering supports the growing demand for tokenized deposits by combining the programmability of on-chain money with the trust, settlement certainty and balance sheet benefits inherent in commercial bank money.
“The banking industry has long provided the trusted infrastructure that underpins the movement of money throughout the global economy,” The Clearing House President and CEO David Watson, said in a release. “The Clearing House is proud to help banks scale on-chain money movement by extending the safety, resiliency and settlement certainty of regulated bank payment rails.”
The solution will be accessible to financial institutions across the U.S., enabling banks of all sizes to participate in the emerging global digital payments ecosystem through a modern, trusted and interoperable payment infrastructure.
The initiative has support from participant banks, including: Bridgit Chayt, head of commercial payments and treasury management for Fifth Third Bank; Chris Ward, head of enterprise payments with Truist; and Mike Santomassimo, chief financial officer for Wells Fargo.
“Fifth Third is committed to advancing payment innovation within a framework of trust and regulatory clarity,” Chayt said in a release. ” The Clearing House is uniquely positioned to develop this capability, and we look forward to contributing to its progress.”
Ward discussed how this new initiative builds on the payment system that is already in place.
“As on-chain payments and tokenized deposits scale, they will be grounded in the same principles of trusted clearing and settlement that clients rely on,” Ward said. “Payments run on trust — a strong set of operating rules, consistent and predictable ways transactions clear, and the liquidity and infrastructure behind them. That foundation, in place since The Clearing House was established in 1853, enables a robust, reliable and interoperable system. This initiative builds on those principles — connecting programmable technology with bank-led standards in on-chain environments to enable tokenized deposits at scale and deliver practical benefits to participants. That’s how we move payments forward — extending trusted infrastructure into what comes next.”
Santomassimo noted the endeavor connects blockchain with the traditional banking infrastructure.
“Connecting the innovation of blockchain with established banking infrastructure is essential to scaling digital payments responsibly,” Santomassimo said. “Participating in this initiative boosts Wells Fargo’s ability to give our payments clients the benefits of blockchain along with the trust and stability expected from banks.”
The initiative supports 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.
Participating financial institutions and The Clearing House will continue working with industry stakeholders to explore future interoperability standards, implementation approaches and use cases supporting the evolution of trusted digital financial infrastructure.