Thirty-nine state bankers associations representing thousands of banks are collaborating on a project to build a shared blockchain infrastructure as part of the BankChain Alliance. The solutions will include tokenized deposits, smart payments, stablecoins and automated settlement. It is already in the process of selecting a technology partner with plans to launch during 2027.
While there are several tokenized deposit networks stateside, the alliance’s emphasis is on being an “industry-owned, industry-designed and industry-governed network”. The Clearing House (TCH) is working on an interoperability solution for tokenized deposits. However, the organization is owned by a few large banks, and when it comes to innovation, large banks tend to have different requirements. For example, several banks already have their own internal tokenized deposit solutions, so the TCH is focusing on interoperability. That said, BankChain intends to be interoperable, not a silo.
Other banks are starting from scratch, with the challenge that they don’t yet see demand, so it’s hard to justify a significant investment. For this broader range of US banks, there are the Hazel Network and Cari Network, but they are also not industry owned. By contrast, European efforts are closer to the BankChain Alliance model, with the Commercial Bank Money Token (CBMT) founded as an initiative of Germany’s banking associations. It remains open to new members. Likewise, the Great British Tokenised Deposits (GBTD) consortium is coordinated by industry association UK Finance.
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