US Banks Form Alliance to Build Industry-Owned Blockchain Network
The US banking industry is shifting its stance on blockchain technology, and a new alliance aims to put it at the heart of financial infrastructure. The BankChain Alliance, formed by 39 state bankers associations, plans to build a common blockchain network that will support stablecoins, tokenised bank deposits, smart payments, and automated settlement.
BankChain is designed to be an industry-owned, industry-designed, and industry-governed platform, distinguishing it from private blockchain platforms. This will allow participating institutions to provide services like tokenised deposits, stablecoins, and programmable payments while operating within traditional banking regulatory requirements.
The alliance's interim chair, Kathy Kraninger, stated that the network is 'about banks of all sizes building their own future.' Smaller banks may not have the resources to develop proprietary digital-asset infrastructure, but by pooling development through BankChain, they can access similar capabilities without requiring each bank to construct its own blockchain architecture.
The rapid expansion of stablecoins has changed the calculus for US banks. Initially concerned that consumers and businesses shifting money into privately issued digital dollars could drain deposits from the banking system, large banks are now considering their own stablecoins and tokenised deposits, while smaller institutions are exploring shared infrastructure like BankChain.