NEW YORK — More than a dozen major financial institutions as well as a separate consortium of state bankers associations are moving forward with plans for a global stablecoin venture as traditional banks seek a larger role in blockchain-based payments and intensify their competition with the cryptocurrency industry, a new report reveals
The big banks have discussed developing a stablecoin aimed primarily at their commercial businesses, the Wall Street Journal reported, citing people familiar with the matter.
The project would initially focus on a dollar-backed stablecoin, followed by one tied to the euro and eventually other Group of Seven currencies. Potential uses could vary by region, according to the Journal.
The effort comes as smaller banks and banking trade groups pursue their own blockchain initiatives.
State Banker Groups Announce BankChain Alliance
A consortium of state bankers associations on Tuesday announced plans for the BankChain Alliance, a blockchain platform that would be built for, owned and governed by banks. The initiative is modeled in part on the Federal Home Loan Bank system and is intended to serve banks of all sizes, the Journal reported.
About 39 state bankers associations representing roughly 3,000 banks are participating in the effort, the Journal reported.
The BankChain Alliance plans to use the platform for treasury management, supply-chain finance and cash management. It is expected to launch during the first half of 2027 and support both stablecoins and tokenized deposits.
“That is definitely part of our vision in terms of making sure that we’re providing the services and capabilities that banks would want to take advantage of,” Kathy Kraninger, interim chair of the BankChain Alliance and CEO of the Florida Bankers Association, told the Journal.
More Stablecoin Projects Emerging
Anchorage Digital CEO Nathan McCauley told the Journal that the cryptocurrency company has more than a dozen stablecoin projects in its pipeline, including several involving banks or bank-led consortiums.
The projects are emerging as banks and cryptocurrency companies battle over the future regulatory treatment of stablecoins, including whether holders should be allowed to receive rewards.
Banks have argued that paying yield or rewards on stablecoins could encourage consumers and businesses to move deposits out of federally insured financial institutions. The banking industry has sought restrictions on such payments as Congress considers the Clarity Act, legislation aimed at creating a broader regulatory framework for digital assets, according to the Journal.
Major banks also are pursuing a separate tokenized deposit network, the Journal previously reported.
