Why is Bank of America joining this network?

To defend its payments business against the growth of stablecoins and discussions about a central bank digital currency.

Is the network regulated?

Yes, it operates within the regulated banking system using tokenized bank deposits.

What is the difference between tokenized deposits and stablecoins?

Tokenized deposits represent actual bank deposits within the regulated banking system, while stablecoins are often non-bank digital assets.

Bank of America Joins Tokenized Deposit Network to Defend Payments Business

Bank of America (BAC) joins a shared tokenized deposit network with other major U.S. banks to enable instant blockchain payments, countering the rise of stablecoins and CBDC discussions.

June 7, 2026

2 min read

Source: Simply Wall St.

Bank of America (BAC) has joined a shared tokenized deposit network with other major U.S. banks, aiming to enable 24/7 money movement using blockchain technology with tokenized bank deposits within the regulated banking system.

Details

The new network, whose name has not been disclosed, allows bank deposits to be converted into digital tokens that can be instantly and securely transferred between participating banks. The initiative is a response to the rapid growth of stablecoins and ongoing discussions about a potential U.S. central bank digital currency (CBDC).

Context

Bank of America, which already operates in consumer banking and payments, seeks to protect its market share in the payments sector amid accelerating digital transformation. The identities of other major participating banks have not been revealed.

What This Means for Investors

This move demonstrates Bank of America's commitment to adopting modern technologies to maintain competitiveness. The network could lower transaction costs and increase efficiency, but it is still in early stages and requires regulatory approvals.

Frequently Asked Questions

It is a shared network among major U.S. banks that uses blockchain to convert bank deposits into digital tokens for instant transfers between banks.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.