Banks Unite Against Stablecoin Threat With Compliant Blockchain Network
39 banking associations in the United States have joined forces to create the BankChain Alliance, aiming to counter their fears of clients and capital flowing into blockchain-based stablecoins. The consortium, initiated by the Texas Banking Association, represents thousands of community and mid-sized commercial banks seeking to develop a 24/7 nationwide bank-governed and permissioned blockchain by 2027.
The proposed network will feature security and compliance similar to traditional banking systems but with the added benefit of near-instant settlement of digital assets. This is expected to appeal to the evolving fintech space that now favors blockchains over legacy infrastructure.
The BankChain Alliance plans to offer tokenized deposits, allowing clients to convert standard bank deposits into digital tokens on a shared ledger, unlocking instant liquidity and transactions while eliminating the need for withdrawals. They will also issue native FDIC-compliant and fully backed stablecoins as an alternative to private stablecoins like USDT and USDC.
The new network will also embed smart contracts for automatic settlements upon predefined conditions, including escrow releases and supply chain financial management. The group is currently searching for a technology partner to construct the network with all these features.