U.S. banks to build their own blockchain network within a year

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Banks to build their own blockchain network

U.S. banks move toward blockchain-based settlement

BankChain is the latest in a series of similar projects launched in the U.S. since late 2025. Major, regional and community banks are increasingly developing shared infrastructure for moving payments and deposits through blockchain networks within the regulated banking system.

In June, The Clearing House unveiled its own initiative backed by JPMorgan Chase, Bank of America, Citi, BNY and Wells Fargo. The network is designed to enable interbank settlement using tokenized deposits and connect blockchain transactions with existing payment systems.

Unlike independently issued stablecoins, tokenized deposits represent liabilities of individual banks and retain their status as commercial bank money. This allows banks to offer programmable, round-the-clock transfers while keeping customer funds on their balance sheets.

Regional banks are developing a separate network called Cari, created in partnership with Huntington, First Horizon, M&T Bank, KeyBank and Old National. A minimum viable product launched in March, and more than 30 banks had joined the network by July.

Community banks have also formed the DTX Consortium through the Independent Bankers Association of Texas. In June, the organization said membership had exceeded 50 banks as the group prepared to launch a tokenized-deposit pilot.

Stablecoin developers are also turning to consortium models. In June, Open Standard named more than 140 companies from the banking, payments, technology and crypto sectors connected to the Open USD project. The dollar-backed stablecoin is expected to launch later in 2026.

The project plans to offer businesses fee-free token minting and redemption, while reserve income will be distributed among participating companies.

Why banks need blockchain

Blockchain can help banks speed up settlement and reduce their reliance on multiple intermediaries. Transfers between financial institutions can be processed almost in real time, including at night and on weekends, while smart contracts can automatically execute certain operations once predefined conditions are met.

Another major use case is tokenized deposits and other digital assets. Banks can issue them within regulated infrastructure while maintaining control over customer funds and complying with regulatory requirements. In the longer term, this could simplify cross-border payments, interbank settlement and transactions involving digital securities.

As a reminder, Wall Street banks are expanding their use of tokenization as transaction volumes continue to grow.

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