Banks Launch Stablecoin Plans Amid Growing Competition from Crypto Issuers
The BankChain Alliance plans to launch a bank-owned blockchain network in 2027, which will enable banks of all sizes to build modern payment rails. The network aims to offer new banking services while complying with safety and regulatory rules, including smart payment tools, tokenized deposits, stablecoins, and automated settlement.
More than 3,283 institutions and $21.8 trillion in assets are part of the BankChain Alliance, which is modeled after the Federal Home Loan Bank. The network will be interoperable with other networks and open to ownership by banks nationwide.
The consortium has been discussing the launch of a stablecoin backed by the US dollar, euro, and other currencies. This move comes as major nonbank companies have entered the market, sparking concerns among traditional lenders that stablecoins could encroach on their business.