Deep Tide TechFlow message: On September 19, according to CoinDesk, JPMorgan (JPMorgan) has been circulating more than $3 trillion on its Kinexys blockchain platform, while Citigroup’s Token Services processes billions of dollars in cross-border payments every day. However, neither of these Wall Street giants’ tokenization projects is designed for ordinary retail depositors. Mintoo Bhandari, founder of Monument Bank, said that currently, most tokens that have already been minted and used for transfers are internal projects. "This has not yet had a substantive impact on the banking system as a whole or on consumers."

The core difference is that banks build tokenized deposits and payments on blockchain infrastructure, but most projects still restrict access to institutional clients or permissioned networks. Lynq Network CEO Jerald David pointed out that large institutions’ treasury teams typically need to operate three separate systems to complete a single transaction, including a JPMorgan tokenized deposit, a regulated stablecoin, and a traditional correspondent account. This fragmentation leaves idle liquidity dispersed across multiple networks, making capital efficiency five times lower than if it were stored in one place.

In addition, traditional banks are still constrained by legacy architectures from the 1970s, making it difficult to integrate modern systems. The misalignment between digital-currency settlement times and bank working hours also exacerbates idle funds—after the fund receives stablecoin repayments on Saturday, if additional margin is required before the market opens on Monday, the funds cannot be mobilized. David said, “Capital is there, just misallocated—it can’t be used where and when it’s needed.” At the same time, banks worry that connecting a private blockchain to external networks would lead to customer transaction data leakage, further hindering the move toward openness.