39 US banking groups form alliance for industry-owned stablecoin blockchain

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 alliance describes the network as industry-designed and industry-governed. The alliance is targeting a 2027 launch. The alliance has not named a technology partner. The network will interoperate with other systems. The alliance invited banks nationwide to take ownership stakes. The announcement said the network will let participating financial institutions offer digital banking services while preserving regulatory compliance, security, and customer trust associated with traditional banks. Interim chair Kathy Kraninger leads the effort. Kraninger also runs the Florida Bankers Association. The 39 associations represent 3,283 banks. Those banks hold $21.8 trillion in assets. The group pressed senators in July to tighten stablecoin yield rules in the CLARITY Act. Section 404 bars covered parties from paying returns on payment stablecoins solely for holding. The provision preserves activity-based rewards. In a July 13 letter, 78 banking groups raised concerns about what they called ambiguities in the bill. The signatories recommended deleting subsection (3)(B). The American Bankers Association and the Independent Community Bankers of America joined the state associations in signing the letter. Senators are scheduled to hold a cloture vote on the CLARITY Act in September. The vote will test whether the yield language remains in the bill.