The traditional U.S. banking sector no longer views blockchain technology as just an experiment. According to recent developments, 39 state banking associations have come together to form the BankChain Alliance, representing roughly 3,283 U.S. banks. The combined assets of these banks are reported to be approximately $21.8 trillion.
The plan is to develop a shared, industry-owned blockchain network for banks by 2027. Through this network, the goal is to provide features such as Tokenized Deposits, Stablecoins, Programmable Payments, and Automated Settlement.
Why are banks building their own blockchain?
In the traditional banking system, transferring money and settling it requires going through different institutions and systems. This process can take time and may also increase costs.
One major advantage of blockchain is that transactions can be recorded and settled more quickly, while also having the capacity to run the system 24/7.
The concept of BankChain is trying to solve the same kind of problem, but with one important difference.
These banks want infrastructure that the banking industry can control and govern, rather than having to rely fully on an existing public crypto network.
Why is this news important for XRP and XLM?
XRP and XLM are mentioned here because for years public blockchain network have been offering their technology for fast global payments and settlement.
But one thing should remain clear: no direct connection between BankChain and the XRP Ledger or Stellar has been announced.
So it would not be correct to say that 3,283 banks will buy XRP, or that BankChain will necessarily use XRP.
The real question is something else.
If banks can make fast 24/7 payments through their tokenized deposits and stablecoins, then how much would they need any external crypto asset?
This is the competition that crypto investors should watch over the coming years.
SWIFT is also moving toward blockchain
BankChain is not a standalone project.
SWIFT is also preparing a blockchain-based ledger for the banking sector, while major financial institutions are testing new ways of conducting international transactions through tokenized deposits.
On the other hand, in the private sector, stablecoins and new on-chain payment networks are also emerging.
In other words, a new race has begun in the world of global payments.
The CLARITY Act vote on September 15 is also important
The timing of this news is also quite interesting.
On September 15, a significant procedural vote on the CLARITY Act is expected in the U.S. Senate. At a time when debate over crypto regulation is ongoing in the U.S., banks are moving toward building blockchain infrastructure themselves.
This could be a sign that traditional financial institutions are trying to incorporate crypto technology into their systems rather than completely ignoring it.
What is the real story?
In my view, the most important aspect of this news is not the number of 3,283 banks, but the banking industry’s attitude.
A few years ago, blockchain was mostly associated with the crypto market. Today, banks, SWIFT, major payments companies, and financial institutions are also trying to use the same technology in their own way.
Now the future question isn’t whether banks will use blockchain.
The real question is:
Will they use public networks like XRP and XLM, or will they build their own closed, controlled blockchain systems?
The impact of this competition on the crypto market in the coming years could be very significant.