Bank Groups in 39 US States Launch Blockchain Alliance to Support Stablecoins, Tokenized Deposits

Banking associations in 39 US states are moving to build an industry-owned blockchain network to support digital financial services such as stablecoins and tokenized deposits.

The state banking groups said on August 25 they launched the BankChain Alliance and aim to build the blockchain network by next year. The project brings together banking associations in 39 states and thousands of banks under those groups.

The BankChain Alliance said the network will be owned, designed and operated by the banking industry. It will support blockchain-based financial services including smart payments, tokenized deposits and stablecoins. The alliance also plans to ensure interoperability with other networks and is looking for a technology partner to build the system.

“We will build a secure and regulated network so financial institutions of every size can offer modern financial services,” interim project chair Cathy Kranninger, head of the Florida Bankers Association, said. The goal, she added, is to help banks serve customers safely and efficiently regardless of region or size.

US banks have recently expanded efforts to apply blockchain technology to existing financial infrastructure. SWIFT, the global banking messaging network, said last month that it would test live transactions of tokenized digital assets on blockchain-based ledgers with 17 banks, including Citigroup, BNY and Wells Fargo.

Banks and the crypto industry, however, have continued to clash over stablecoin regulation. US banking groups said in April that follow-up rules for the GENIUS Act, which regulates stablecoin issuers, should be implemented more slowly. Even so, the banking industry is now moving directly into digital finance by backing stablecoins through its own blockchain network.