The “BankChain Alliance” plans to launch a nationwide, bank-operated blockchain network in 2027, with a focus on stablecoins, digital payments and tokenized deposits within the regulated banking system.
The initiative comes after a year of intense policy disagreements in Washington between traditional financial institutions and the crypto industry. State banking associations now want to build their own blockchain infrastructure to support emerging financial services, including programmable payments, tokenized deposits and stablecoin applications.
According to a Tuesday announcement, 39 state banking associations have joined the BankChain Alliance and aim to have the network operational by next year. The groups describe the project as being “industry-owned, industry-designed and industry-governed,” representing thousands of banks across the country.
Kathy Kraninger, who leads the Florida Bankers Association and previously headed the Consumer Financial Protection Bureau, is serving as interim chair. She said the planned network would provide a secure and regulated environment that enables banks of every size to deliver modern financial products while continuing to serve customers across rural, urban and regional communities.
The alliance has not yet selected a technology partner to develop the blockchain. The participating banking groups said they intend for the network to connect with and operate alongside other blockchain networks.
Banking Sector Deepens Its Blockchain Push
Blockchain and cryptocurrency were initially promoted in part as alternatives to conventional banking infrastructure, but banks have increasingly incorporated blockchain-based technologies into their own operations.
Swift, the bank-owned messaging network used throughout the global financial system, said last month that 17 banks, including Citi, BNY and Wells Fargo, would begin testing real transactions involving tokenized digital assets through a blockchain-based ledger.
The banking sector has also been involved in the regulatory debate surrounding stablecoins. In April, banking organizations pushed for changes to the implementation of provisions under the Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS Act, which sets rules for stablecoin issuers.
The BankChain Alliance marks another attempt by the banking industry to develop blockchain infrastructure under its own governance and regulatory framework, while creating new avenues for tokenized deposits, stablecoins and blockchain-powered payment systems.
