Thirty-nine state banking associations across the United States have formed BankChain Alliance. The group plans to build an industry-owned blockchain network for banks and wants to launch it by 2027. The announcement came Tuesday, though the alliance did not name any specific banks that have committed yet.
What the network is supposed to do
According to BankChain, the network will support smart payments, tokenized deposits, stablecoins, and automated settlement. The group says interoperability with other blockchain systems is a priority. A technology partner is still being chosen. Exactly how the network will be governed and funded remains unclear. The alliance expects to invite banks nationwide to buy ownership stakes, meaning a broad set of institutions could have a say.
The member associations represent thousands of banks, from large institutions down to community lenders. That gives the project a fairly wide base of support before individual banks have publicly signed on.
Other bank-led blockchain efforts
BankChain is not the only attempt to bring blockchain into regulated banking. Late last year, The Clearing House introduced an onchain money project backed by JPMorgan Chase, Bank of America, Citi, BNY, and Wells Fargo. That effort is focused on clearing tokenized deposits and connecting blockchain activity with existing payment systems.
Regional banks have also been moving. Cari, a blockchain network developed by Huntington, First Horizon, M&T Bank, KeyBank, and Old National, released a minimum viable product in March. More than 30 banks joined by July. At the community bank level, the DTX Consortium from the Independent Bankers Association of Texas has drawn more than 50 banks, with a tokenized deposit pilot in the works.
Tokenized deposits are different from stablecoins issued by independent companies. They are direct claims on banks and count as ordinary commercial bank money. The idea is to let banks offer programmable payments and immediate transfers while keeping customer funds inside the regulated system.
Stablecoin consortia are forming too
In June, Open Standard listed more than 140 organizations tied to Open USD, a US dollar-backed stablecoin expected to launch by the end of 2026. The project plans to let businesses mint and redeem tokens without fees and share reserve earnings among members.
The BankChain Alliance says the 2027 target is realistic, but there are still open questions about governance, technology, and ownership. The next few months should show whether the project can turn broad state-level support into a working network.
