{
  "id": 11281158,
  "title": "Banks Blockchain Bet Comes Down to Moving the Money",
  "url": "https://urgent.news/2026/10/01/banks-blockchain-bet-comes-down-to-moving-the-money",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-01T21:02:55.000Z",
  "source": {
    "name": "PYMNTS",
    "slug": "pymnts",
    "url": "https://www.pymnts.com/blockchain/2026/banks-blockchain-bet-comes-down-to-moving-the-money/"
  },
  "original_language": "en",
  "account": "As Wall Street banks delve deeper into blockchain technology, the focus has shifted from experimentation to practical applications. Institutions like Morgan Stanley, J.P. Morgan, and Citi are exploring various aspects of tokenization, from stablecoins to tokenized securities and deposits. However, the definition of these digital assets remains somewhat ambiguous, with tokenized deposits representing commercial-bank money and stablecoins designed for broader circulation on public blockchain networks.\n\nWhile some banks, such as J.P. Morgan, have made significant strides in developing production-grade blockchain infrastructure, others are still grappling with the challenge of inter-network tokenization. Most production systems remain isolated environments, with tokenized deposits or securities often encountering traditional custody, compliance, and settlement infrastructure. For instance, Citi's Citi Token Services enables institutional clients to move liquidity and make payments beyond conventional banking cutoffs, while HSBC's Tokenized Deposit Service allows corporate customers to convert deposits into digital tokens and move funds between blockchain wallets in real time.\n\nThe push for regulatory clarity is also evident, with the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) preparing for a future with mass tokenization and potentially 24/7 markets. As banks continue to integrate blockchain into their operations, the focus is shifting from tokenization as a product category to an alternative operating layer for custody, assets, liquidity, and settlement. Interoperability remains a key challenge, with banks striving to remove frictions and enable seamless movement of digital assets across different networks and ledgers.",
  "summary": "Wall Street’s embrace of digital assets has reached the point where saying a bank is “doing blockchain” reveals almost nothing about what it can actually do on-chain. One bank may be experimenting with tokenized securities inside an innovation lab. Another may let corporate customers move tokenized commercial-bank deposits around the clock, while a third may […] The post Banks Blockchain Bet…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}