BankChain Alliance Aims to Build Nationwide Blockchain Network for Community Banks

Thirty-nine US state banking associations have announced the formation of the BankChain Alliance, aiming to create a nationwide permissioned blockchain network. The Texas Bankers Association is leading the charge, with Kathy Kraninger, president and CEO of the Florida Bankers Association, serving as interim chair.

The planned network will allow banks to represent customer deposits as digital tokens on the blockchain, enabling faster transfers and settlements between participating institutions. It will also feature bank-issued stablecoins, which would be backed by actual deposits and subject to existing oversight.

The alliance emphasizes interoperability with other networks, suggesting that the BankChain network won't be a walled garden. The technology partner selection is currently underway, and the choice of blockchain protocol will determine much about the network's capabilities.