Citi, Mastercard, Visa and top US banks accelerate blockchain tests for stablecoin and tokenized assets

Payments and deposits take center stage

Stablecoin settlement has become one of the main areas of focus within payment networks. Mastercard revealed that it will add stablecoin settlement options for issuers and payment acquirers by June. Visa is collaborating with Brale to test private stablecoin settlement on the Canton Network, a privacy-focused blockchain infrastructure designed for institutional use.

Glossary: Settlement refers to the final completion of a payment or securities transaction between parties. Tokenized deposits are digital representations of bank deposits used on the blockchain.

On the banking side, preparations are also underway for tokenized deposits. According to the Wall Street Journal, JPMorgan Chase, Citigroup, Bank of America, Wells Fargo, and The Clearing House are developing a tokenized deposit network led by banks. The launch of this network is targeted for the first half of 2027.

Similar advances are appearing in retail banking. SoFi has launched its SoFiUSD stablecoin on its consumer banking platform and named Bullish as its first centralized exchange partner. The company’s management underscored that this move aims to reduce a long-standing barrier between crypto assets and traditional finance.

CoinMarketCap’s analysis points out that Wall Street has entered a new phase in institutional crypto adoption: the focus is moving from trading desks and ETF products to the core infrastructure of the financial system.

Tokenization expands into private markets and investment funds

The trend toward tokenization is also broadening in private markets. Citi rolled out its Digital Depositary Receipts solution this June for private company shares, aiming to offer investors a new channel as demand for access to pre-IPO companies grows. As one of the leading US banking groups, Citi boasts a global reach in corporate finance and custody services.

A similar shift is evident in fund products. BlackRock, after launching its first tokenized money market fund BUIDL in 2024, filed to expand its range of offerings in this space. Separately, Finance, J.P. Morgan’s Kinexys division, Mastercard and Ripple completed a pilot in May that allowed redemption of tokenized US Treasury funds through blockchain infrastructure.

Stock tokenization is gaining ground as well. Coinbase has revealed plans to offer tokenized US equities to clients outside the US, while Kraken’s parent company, Payward, has highlighted tokenized IPO access through its xStocks platform.

Infrastructure and custody services grow

Supporting these products, large-scale infrastructure is being established for settlement and custody. In May, the DTCC announced it had launched a tokenization service involving more than 50 financial firms. Limited production operations for select tokenized real-world assets are slated to begin in July, with a broader rollout planned for October.

There is also a trend toward consolidation in custody services. In May, Standard Chartered announced it would acquire the crypto custody business of Zodia Custody and integrate it into its own infrastructure. The bank aims to further deepen its digital asset services with this move.

In a report published in February, Ripple in collaboration with Quinlan & Associates emphasized that digital asset custody services form the foundational layer for all digital asset use cases in financial institutions.

Recent developments show that blockchain is being increasingly integrated into the daily operations of major financial institutions, including money transfer, securities issuance and transaction settlement.