The “BankChain Alliance” is preparing to launch a nationwide blockchain network for banks in 2027, with the planned infrastructure supporting stablecoins, digital payments and tokenized deposits under the existing banking regulatory framework.

The project follows a year of regulatory disputes in Washington involving traditional banks and the crypto industry. State banking associations now plan to develop a bank-controlled blockchain designed to enable financial services such as programmable payments, tokenized deposits and stablecoin transactions.

Thirty-nine state banking associations have joined the BankChain Alliance, according to a statement issued Tuesday. The groups hope to build the network by next year and describe it as an “industry-owned, industry-designed and industry-governed” project representing thousands of U.S. banks.

Kathy Kraninger, head of the Florida Bankers Association and former director of the Consumer Financial Protection Bureau, is serving as interim chair. She said the planned network would offer a secure and regulated platform that allows banks of different sizes to introduce modern financial capabilities while continuing to serve customers in rural, urban and regional communities.

The alliance is still searching for a technology partner to construct the blockchain. The participating associations said the system is expected to be interoperable with other blockchain networks, allowing it to connect with existing infrastructure.

Banks Expand Their Blockchain Strategy

Although blockchain and crypto were originally developed partly in response to shortcomings in traditional banking, financial institutions have increasingly adopted technologies from the digital-asset industry.

Swift, the bank-owned messaging network used by financial institutions worldwide, announced last month that 17 banks, including Citi, BNY and Wells Fargo, would begin testing real-world transactions involving tokenized assets through a blockchain-based ledger.

Banking groups have also been active in the debate over stablecoin regulation. In April, industry organizations pushed to slow or modify the implementation of rules established under the Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS Act, which governs stablecoin issuers.

The BankChain Alliance represents a broader effort by U.S. banks to establish their own blockchain infrastructure, giving financial institutions a regulated environment for expanding tokenized deposits, stablecoin applications and blockchain-based payment services.