Anchorage Digital Launches Tokenized Deposit Platform for Banks

Anchorage Digital launched a platform that lets banks issue and manage tokenized deposits on blockchain networks. The system operates as a parallel layer to existing banking infrastructure without replacing each institution's core systems.

JPMorgan and Bank of America plan to build their own tokenized deposit network by the first half of 2027. The network would allow 24/7 settlement between participating banks using blockchain rails.

Tokenized deposits are a form of digital money that can move on blockchain outside traditional wire transfer hours. They differ from stablecoins in that they represent direct claims on the issuing bank, not a separate token issuer. Each tokenized deposit is a digital representation of a deposit liability on the bank's balance sheet, recorded on a permissioned blockchain.

The Anchorage platform is designed to work alongside existing bank systems. Banks can issue tokenized deposits on the platform and manage them through Anchorage's custody and settlement infrastructure. The platform handles the blockchain layer, while banks retain control over their core ledger and compliance processes.

Bank of America, which carries an AlphaScala Alpha Score of 65 (Moderate), is one of the banks involved. BAC stock page

The push by JPMorgan and Bank of America is part of a broader move by large banks to explore blockchain for settlement. Tokenized deposits reduce reliance on correspondent banking and cut settlement times from days to seconds. They enable programmable money, where payments can be automated based on smart contract conditions.

The shift is not without hurdles. Banks must ensure tokenized deposits comply with existing regulations around deposit insurance and capital requirements. The networks are permissioned, limiting participation to verified institutions.

The Anchorage platform provides the custody and settlement infrastructure for these networks. Anchorage Digital is a federally chartered digital asset bank, giving it a regulatory framework that traditional crypto exchanges lack.

Tokenized deposits bring bank money onchain, expanding the use of blockchain for payments and settlement. They compete with stablecoins for onchain settlement. They are regulated bank money, which appeals to institutions that prefer a regulated counterparty.

Tokenized deposits are part of a broader push by banks to tokenize assets, including bonds and funds. Tokenized deposits are gaining traction among institutional players, with two of the largest U.S. banks committing to a network.

The banks aim to have the network operational by the first half of 2027.