US banks are not rushing to offer speculative crypto products but are instead methodically integrating blockchain infrastructure into core services such as payments, deposits, custody, and fund administration. Their focus is on tokenization—representing traditional financial assets as regulated digital tokens on distributed ledgers. Tokenized deposits, such as JPMorgan’s JPM Coin and Citi’s Token Services, allow real-time, 24/7 institutional transfers within existing regulations, not as unregulated stablecoins. The New York Fed has piloted interbank payments using tokenized deposits and a theoretical wholesale CBDC with major banks. Some banks are considering tokenizing real-world assets like private credit and commercial real estate for enhanced liquidity and fractional ownership. Robust digital asset custody is being built, as seen with BNY Mellon’s live digital custody platform for Bitcoin and Ether. Regulators permit banks to provide custody and certain payment functions for crypto assets but advise caution and close supervision. Banks are also beginning to tokenize investment funds, like JPMorgan’s tokenized money market fund on Ethereum. Overall, US banks are cautiously preparing for an onchain financial future by adapting traditional products within regulated frameworks and incrementally adopting blockchain technologies.

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