Crypto
Home›Crypto›Market Structure›Clarity Act delay pushes tokenized-deposit pilots and…
Clarity Act delay pushes tokenized-deposit pilots and interoperability work
With the bill moved into September, major banks have kept building systems for tokenized deposits and testing onchain settlement, including efforts aimed at cross-network connectivity.
The Senate’s push of the Clarity Act into September has left digital asset market rules unsettled for at least several more weeks, according to analysis from CoinDesk. The delay is shifting focus away from whether banks will issue tokenized deposits, and toward whether the systems being built can communicate with each other.
CoinDesk reports that JPMorgan has been moving institutional payments through its Kinexys platform for years, with more than $3 trillion in cumulative transaction volume, and now offers JPMD, a deposit token for institutional clients. Citi also operates Token Services for cross-border treasury across four markets.
In June, seventeen financial institutions including JPMorgan, Bank of America, Citi, and Wells Fargo said The Clearing House would clear and settle tokenized deposits onchain, with a reported target of 2027. In March, banks including Huntington, First Horizon, M&T Bank, KeyCorp, and Old National joined as design partners on the Cari Network, a bank-governed tokenized-deposit network led by former Comptroller Gene Ludwig.
CoinDesk adds that the Cari Network is powered by Prividium, a privacy-focused layer 2 built on ZKsync, and is designed to let regulated banks issue, transfer, and redeem tokenized deposits while keeping them on their balance sheets. The analysis also notes tokenized deposits represent claims on specific banks, meaning different token liabilities are not automatically interchangeable, even with new technology.