A coalition of 39 state bankers’ associations has formed the BankChain Alliance to build an industry-owned blockchain network dedicated to stablecoins, tokenized deposits, and automated settlement.
Announced on Tuesday, the alliance describes the initiative as industry-owned, industry-designed, and industry-governed. The network aims to allow participating financial institutions to provide new digital banking services while maintaining the regulatory compliance, security, and customer trust of traditional banking. Kathy Kraninger, who leads the Florida Bankers Association, is serving as the interim chair for the effort.
“BankChain Alliance is developing a secure, regulated, industry-built and industry-owned network that allows institutions of all sizes to provide modern capabilities so they can continue serving customers safely and efficiently in rural, urban and regional communities across the country,” Kraninger stated.
The alliance is aiming for a 2027 network launch and has not yet named a technology partner. Together, the 39 participating associations represent 3,283 banks that hold a combined $21.8 trillion in assets. The organization stated that the network will interoperate with other systems and invited banks nationwide to take part in ownership.
This initiative coincides with ongoing efforts by the banking industry to shape legislative rules concerning stablecoin rewards under the proposed CLARITY Act.
The CLARITY Act and Stablecoin Yields
The CLARITY Act is a digital asset market structure bill currently pending in the Senate. Section 404 of the bill prohibits covered parties from paying returns on payment stablecoins solely for holding them, while preserving activity-based rewards.
This provision has faced resistance from the banking sector. In a July 13 letter, 78 banking groups—including the American Bankers Association and the Independent Community Bankers of America—expressed concern over ambiguities in the legislation that they believe could allow stablecoin arrangements to function as deposit substitutes. Signatories recommended targeted revisions, including the removal of an entire subsection.
Senators are scheduled to return to the CLARITY Act in September for a cloture vote to test the stability of the current yield language.
