U.S. State Banking Groups Plan Nationwide Blockchain Network

The “BankChain Alliance” is targeting a 2027 launch to support stablecoins, payment applications and tokenized deposits within the regulated banking sector.

After months of policy disputes in Washington between traditional banks and the crypto industry, state banking associations have unveiled plans for a new blockchain network operated by banks. The initiative is designed to support financial applications such as programmable payments, tokenized deposits and stablecoins.

Thirty-nine state banking associations have joined the “BankChain Alliance” and plan to develop the network by next year, according to a statement released Tuesday. The groups described the initiative as “industry-owned, industry-designed and industry-governed,” calling it a major collaboration involving 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 of the initiative. She described the proposed system as a secure and regulated network that would allow banks of different sizes to offer modern financial services while continuing to serve customers safely and efficiently across rural, urban and regional markets.

The alliance has not yet selected a technology provider to develop the blockchain. According to the statement, the network is intended to be interoperable with other blockchain systems.

Blockchain and cryptocurrency initially emerged in part from dissatisfaction with traditional financial institutions, but banks have increasingly adopted technologies developed within the broader crypto and blockchain sector.

Banks Increasingly Embrace Tokenization

The banking industry has already begun experimenting with blockchain-based financial infrastructure. Last month, Swift, the bank-owned global messaging network, announced that 17 banks, including Citi, BNY and Wells Fargo, would begin testing real-world transactions involving tokenized digital assets on its blockchain-based ledger.

At the same time, banks and industry groups have continued lobbying over stablecoin regulations. In April, banking organizations pushed back against the implementation of rules created under last year’s Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS Act, which establishes requirements for stablecoin issuers.

The BankChain Alliance represents another step in the banking sector’s effort to develop blockchain infrastructure under its own regulatory framework while expanding the use of tokenized assets, stablecoins and blockchain-powered payments.