State Banking Groups Chart Path Toward a National Blockchain Network

The “BankChain Alliance” is targeting 2027 for the launch of a nationwide blockchain network owned and operated by the banking industry, with plans to support stablecoins, payments and tokenized deposits within the regulated financial system.

The initiative follows a year of regulatory friction in Washington between traditional financial institutions and the crypto sector. State banking associations now want to create dedicated blockchain infrastructure for banks to develop services such as programmable payments, tokenized deposits and stablecoin-based transactions.

According to a Tuesday announcement, 39 state banking associations have signed onto the BankChain Alliance. The organizations aim to develop the network by next year and describe it as an “industry-owned, industry-designed and industry-governed” project representing thousands of banks.

Kathy Kraninger, head of the Florida Bankers Association and a former director of the Consumer Financial Protection Bureau, is serving as interim chair. She said the network would provide a secure and regulated environment that allows banks of all sizes to introduce modern financial capabilities while continuing to serve customers across rural, urban and regional communities.

The alliance has not yet selected a technology provider for the project. Its members said the planned blockchain will be designed to work with other networks, allowing banks to connect the new infrastructure with existing systems.

U.S. Banks Step Further Into Blockchain

While blockchain and cryptocurrency were initially developed partly as alternatives to traditional financial institutions, banks have increasingly adopted blockchain-based technology for their own operations.

Swift, the bank-owned messaging network used throughout the global financial system, announced last month that 17 banks, including Citi, BNY and Wells Fargo, would begin testing actual transactions involving tokenized digital assets through a blockchain-based ledger.

Banks and their industry groups have also been involved in the debate over stablecoin regulation. In April, banking organizations sought changes to the implementation of rules established under the Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS Act, which governs stablecoin issuers.

The BankChain Alliance could provide banks with a dedicated blockchain infrastructure for expanding tokenized deposits, stablecoins and blockchain-powered payments while keeping those activities within a banking-led and regulated environment.