US Banks Unite Against Stablecoin Threat with BankChain Blockchain Alliance
The BankChain Alliance has been formed by 39 banking associations in the United States to counter fears of client and capital flight into blockchain-based stablecoins. Initiated by the Texas Banking Association, this consortium represents thousands of community and mid-sized commercial banks aiming to develop a 24/7, nationwide, bank-governed and permissioned blockchain by 2027.
The proposed network will feature tokenized deposits for clients to convert standard bank deposits into digital tokens on a shared ledger. This unlocks instant liquidity and transactions, while eliminating the need to withdraw funds from the bank.
The banks also plan to issue native FDIC-compliant and fully backed stablecoins, giving clients a regulated alternative to private stablecoins like USDT and USDC. Smart contracts will be embedded for automatic settlements upon the fulfilment of predefined conditions.