Thirty-nine US state banking associations have jointly announced the formation of the "Bank Chain Alliance" on Tuesday, with plans to introduce a blockchain network by 2027 that is designed, operated, and governed by the banking industry itself. The initiative aims to advance financial innovations such as smart payments, tokenized deposits, and stablecoins.

Kathy Kraninger, president of the Florida Bankers Association and former director of the Consumer Financial Protection Bureau, will serve as the interim chair of the project. Kraninger stated that the network will be a secure, regulated platform capable of delivering modern services to financial institutions of all sizes, ensuring banks can serve customers safely and efficiently in rural, urban, and regional communities.

According to the announcement, the alliance is still seeking technology partners to build the project and intends for the network to achieve "interoperability with other blockchains." While blockchain technology and cryptocurrencies were partly born out of dissatisfaction with the traditional banking system, the banking sector is accelerating its adoption of innovations in this space.

Last month, Swift, the globally owned banking messaging network, revealed that 17 banks, including Citibank, BNY Mellon, and Wells Fargo, would begin testing actual transactions of tokenized digital assets on its blockchain-based ledger. Notably, in April of this year, banking groups attempted to slow down the regulatory implementation process stemming from last year's "US Stablecoin National Innovation and Establishment Act," which sets rules for stablecoin issuers.