US Banks Unite to Build Blockchain Network, Challenge Non-Bank Stablecoin Issuers

A coalition of 39 US state banking associations has formed an alliance to build a shared blockchain network for stablecoins, tokenized deposits, and automated settlement. The BankChain Alliance aims to keep digital banking infrastructure under bank control, governed by federal and state regulators.

The alliance represents 3,283 banks holding a combined $21.8 trillion in assets, according to the announcement. Kathy Kraninger, interim chair of the effort and head of the Florida Bankers Association, said the network will allow institutions to provide modern capabilities while maintaining regulatory compliance and security standards.

The coalition has invited ownership participation from banks nationwide and says the network is designed to interoperate with other systems rather than operate as a closed silo. The project targets a 2027 launch but has not yet selected a technology partner, which will shape how quickly member banks can plug into the network once it's live.

The BankChain Alliance is also lobbying Congress to limit stablecoin yield rules in the CLARITY Act, currently pending in the Senate. Banking groups argue that the bill's language around stablecoin yield leaves room for issuers to effectively offer yield through workarounds, competing more directly with bank deposits under stricter oversight.