Major U.S. banks, including Huntington Bancshares, First Horizon Corp, and M&T Bank Corp., are collaborating to develop a tokenized deposit network in response to increasing stablecoin adoption. Instead of issuing public stablecoins, these banks plan to tokenize traditional deposits within regulated frameworks to maintain control over payment flows. This initiative underscores the growing competition between banks and crypto-native stablecoin issuers.

US Banks Build Tokenized Deposit Network to Guard Their Turf