The Clearing House's Tokenized Deposit Network (TDN) is being developed by JPMorgan, Citi, Bank of America, and Wells Fargo to provide a shared blockchain-based infrastructure for tokenized deposits. This network aims to bridge the gap between traditional batch cycles or near-real-time windows with hard cutoffs used in Fedwire and RTP, and the continuous settlement on-chain offered by stablecoins.
The TDN will allow banks to offer programmable, blockchain-native deposits with FDIC-equivalent protections, which could potentially reduce the appeal of stablecoin issuers that pay yield. The network's interoperability layer connects siloed bank efforts into a single institutional liquidity pool, providing a Regulated Settlement Network at US banking scale.