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NewsBriefs

“The market is moving toward a single credential” that including Ethereum, Solana, Polygon, Arbitrum, Base,
balances convenience, security and operational efficiency, XRPL and others.
Goulet said.
ARQ, CBW Bank, Cross River Bank, Lead Bank and Nuvei
Major banks back Clearing House are expected to be among the first organizations support-
initiative for tokenized deposits ing stablecoin settlement in the United States and Latin
America.
A coalition of major financial institutions is advancing a
new initiative designed to connect blockchain-based fi- Raj Dhamodharan, Mastercard executive vice president
nancial activity with traditional banking infrastructure. for blockchain and digital assets, said the enhancements
Announced June 5 by The Clearing House and supported are intended to help partners manage liquidity in an in-
by several large banks, the effort seeks to enable large- creasingly always-on digital economy while maintaining
scale clearing and settlement of tokenized commercial existing protections, fraud safeguards and dispute pro-
bank deposits while preserving the regulatory framework cesses.
of the existing banking system.
Industry participants described the move as a significant
Under the model, tokenized deposits could move between step toward broader adoption of blockchain-based settle-
participating banks using on-chain technology while re- ment infrastructure. Executives from Circle, Ripple, Cross
maining connected to established payment rails such as River and Lead Bank said demand is growing for faster,
RTP and CHIPS. Supporters said the initiative could help more transparent settlement capabilities that can operate
financial institutions support programmable payments, beyond traditional banking hours. Mastercard said the
automated treasury operations, real-time liquidity man- new capabilities will operate through its existing global
agement and other emerging digital financial services payments infrastructure.
without relying on stablecoins or nonbank-issued digital
assets. Payments by magic wand?

“The banking industry has long provided the trusted Block is experimenting with a new payment form fac-
infrastructure that underpins the movement of money tor aimed at younger consumers through the launch of a
throughout the global economy,” said David Watson, pres- limited-edition Cash App Wand, an NFC-enabled device
ident and CEO of The Clearing House. that can be tapped or waved near payment terminals. De-
signed with Gen Z consumers in mind, the pearlescent
Unlike cryptocurrencies operating outside regulated wand sells for $25 through the Cash App while supplies
banking systems, tokenized deposits represent traditional last and includes a keychain attachment for portability.
commercial bank money issued within existing regula-
tory structures. Supporters argue the model combines The company described the wand as the first in a broader
blockchain programmability with the stability and trust line of “Cash App Tags” intended to make payments more
associated with regulated bank deposits. visible, social and customizable. Block said the devices are
particularly useful in situations where phones are incon-
Participating institutions include Bank of America, BMO venient or prohibited, such as concerts, festivals or phone-
Financial Group, BNY, Citi, Citizens Financial Group, Fifth free venues.
Third Bank, HSBC, JPMorgan Chase, PNC Bank, TD Bank,
U.S. Bank and Wells Fargo. The Clearing House said the “We see a unique opportunity here to make payments vis-
initiative could eventually allow banks of varying sizes ible and social for the first time,” said Thomas Templeton,
to participate in blockchain-enabled payment ecosystems. hardware lead at Block. He added that early testers en-
joyed showing off the wand during transactions.
Mastercard expands settlement capabilities
Block said the technology could eventually expand into
Mastercard plans to expand its settlement capabilities to additional wearable and collectible payment formats, in-
give issuers and acquirers greater flexibility in how and cluding jewelry and clothing. Consumers must already
when transactions are settled, including support for intra- have a Cash App Card to activate a tag, which can then be
day, weekend and holiday settlement. The company said used anywhere Visa tap-to-pay is accepted.
the enhancements are designed to improve liquidity man-
agement and support use cases where timing and trans- The company cited research showing strong Gen Z inter-
parency are critical, including cross-border payments, est in collectibles and personalized payment products.
treasury operations and payouts. According to Block, one in five American teens already
uses a customizable Cash App Card, while a recent sur-
The expanded capabilities will support settlement in both vey found 38 percent of Gen Z consumers purchase col-
fiat currency and regulated stablecoins. Mastercard said it lectibles or limited-edition items at least monthly. Security
will enable settlement using Circle’s USDC, Paxos-issued features include real-time transaction alerts, fraud moni-
stablecoins including PYUSD, USDG and USDP, Ripple’s toring and the ability to lock or deactivate a tag instantly
RLUSD and SoFi’s SoFIUSD across blockchain networks through the app.

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