State Banking Associations Announce Plans for Bank-Run Blockchain Network

Thirty-nine U.S. state banking associations said Tuesday they intend to build a nationwide blockchain network aimed at supporting stablecoins, tokenized deposits and instant payments within the banking industry’s existing regulatory structure. 

The group, called the BankChain Alliance, is targeting a 2027 launch but has not yet selected a technology partner to build the system.

Banks Frame the Network as an Industry-Controlled Alternative

The BankChain Alliance describes itself as industry-owned, industry-designed and industry-governed, according to the group’s Tuesday statement. The framing positions the network as a banking-sector alternative to blockchain infrastructure built by cryptocurrency companies, keeping the underlying technology inside a structure banks already operate under.

Kathy Kraninger, president and CEO of the Florida Bankers Association and a former director of the Consumer Financial Protection Bureau, is serving as the project’s interim chair. Kraninger described the initiative as representing a broad swath of the industry.

“An unprecedented collaboration representing thousands of banks.” 

Kraninger added that the network is intended to give banks of all sizes access to modern payment and deposit capabilities while continuing to serve customers across rural, urban and regional markets nationwide.

Project Remains Early Stage, With No Technology Partner Selected

The alliance has not yet hired a technology provider to build the network, according to Tuesday’s statement. 

The group said it intends for the resulting system to be interoperable with other blockchain networks already in use across the financial industry, though the specific technical approach has not been finalized.

The 2027 target date reflects the group’s stated goal rather than a confirmed delivery timeline, since the project has not yet reached the stage of selecting the infrastructure it will run on. 

Thirty-nine state associations have signed on to date, though the statement did not specify whether additional associations may join before the network’s design is finalized.

Announcement Follows a Year of Friction Over Crypto Policy

The banking industry and the crypto sector have clashed repeatedly over financial policy this year. Banking groups sought in April to slow implementation of regulations tied to last year’s Guiding and Establishing National Innovation for U.S. Stablecoins Act, the federal law governing stablecoin issuers. 

The two industries also fought over stablecoin yield policy ahead of a Senate vote in May. Despite that friction, banks have moved to adopt blockchain-based infrastructure of their own. 

Swift, the bank-owned messaging network used across the global banking sector, said last month that 17 banks, including Citi, BNY and Wells Fargo, were set to begin testing actual transactions of tokenized digital assets on its blockchain-based ledger. 

That pilot is already underway, a more advanced stage than the BankChain Alliance’s current planning phase.

What the Network Would Compete Against

If built as described, the BankChain Alliance would give banks a blockchain settlement layer under their own governance, rather than relying on public blockchain networks or stablecoin infrastructure built by crypto-native firms. The distinction matters for how deposits, payments and tokenized assets would be regulated and who controls the underlying rails.

Whether the alliance meets its 2027 target will depend heavily on which technology partner it selects and how quickly that partner can build a system compatible with existing bank regulatory requirements. No timeline for selecting that partner has been disclosed.