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The Mass Bankers trade group – along with 38 other state banking associations – announced the formation of BankChain Alliance.
The alliance said it aims to create an industry-owned, industry-designed and industry-governed network built on a common blockchain platform. The BankChain Alliance network will allow participating financial institutions the ability to provide emerging banking capabilities while maintaining regulatory standards and security, according to an announcement issued by Mass Bankers Tuesday.
“The BankChain Alliance represents an important opportunity for banks of all sizes to help shape the future of financial services rather than simply react to it,” MassBankers board chair Anne Tangen said. “As chair of the Massachusetts Bankers Association, I believe a collaborative, bank-led approach to innovation is critical to preserving a diverse and competitive banking system. By giving banks a voice in governance, technology development, and product design, this initiative can help ensure that emerging payment and digital asset capabilities strengthen local relationships, support community investment, and deliver meaningful value to customers.”
Tangen is also president and CEO of BankFive, in Fall River.
Examples of such innovations are smart payment tools, tokenized deposits, stablecoins, automated settlement and other innovations using blockchain software, most famously used by cryptocurrencies like Bitcoin. MassBankers President and CEO Kathleen Murphy said the alliance is looking for the eventual technology provider to create a platform that can be used by any bank regardless of which core technology provider it uses.
“This is going to provide a reach for even the smallest bank that does not exist today,” Murphy said. “Where oftentimes they’re beholden to vendors, this way they’re going to be part of this network. They will become part of the Bank Chain Alliance, and then as such, they will have the ability to help set the rules and the standards, and in essence, set their own destiny, as opposed to being beholden to a third party.”
The blockchain is being dubbed a “public-permissioned blockchain”. This means that for banks interested in participating will have access, but those who do not wish to will not and will have to be admitted to the blockchain.
The target launch for the platform is in 2027.
