A coalition of 39 state bankers’ associations formed BankChain Alliance on Tuesday to build an industry-owned blockchain network for stablecoins, tokenized deposits, and automated settlement.

The same group also spent July pressing senators to tighten stablecoin yield rules in the CLARITY Act.

BankChain Alliance Targets a 2027 Launch

BankChain Alliance describes the project as industry-owned, industry-designed, and industry-governed. 

According to the announcement, the network will enable participating financial institutions to offer new digital banking services while preserving the regulatory compliance, security, and customer trust associated with traditional banks.

Interim chair Kathy Kraninger leads the effort. She also runs the Florida Bankers Association.

“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,” she said.

The alliance is targeting a 2027 launch and has not named a technology partner. Together, the 39 associations represent 3,283 banks holding $21.8 trillion in assets. 

The group said the network will interoperate with other systems. It also invited ownership from banks nationwide.

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The launch comes as the banking industry is also pushing for changes to how stablecoin issuers can reward holders under the proposed market structure framework.

Why the Stablecoin Yield Fight Matters

The CLARITY Act is the digital asset market structure bill now pending in the Senate. Section 404 bars covered parties from paying returns on payment stablecoins solely for holding. Still, it preserves activity-based rewards

The provision has drawn pushback from the banking industry. In a July 13 letter, 78 banking groups raised concerns regarding what they described as “ambiguities within the bill.”

Its signatories recommended several targeted revisions, including deleting the entire subsection (3)(B).

“We remain concerned that ambiguities within the bill could encourage stablecoin arrangements to effectively function as substitutes for deposits,” the letter read.

The American Bankers Association and the Independent Community Bankers of America joined the state associations in signing the letter. 

Senators return to the CLARITY Act in September, where a scheduled cloture vote will test whether the yield language holds.

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Source: BeInCrypto