BankChain Alliance bets banks, not crypto, own the path to on-chain money

A group of 39 state bankers associations has founded the BankChain Alliance for establishing a blockchain network wherein commercial banks will have ownership, with the hope that small banks and their clients will rely on regulatory banks for on-chain finance instead of crypto firms.

The initiative raises a crucial question: will digital currency eventually circulate through traditional banking systems or through crypto-based products such as stablecoins and derivatives? BankChain responds by creating a network designed and controlled by its members.

Those at the helm of this initiative include Locality Bank’s co-founder and Chief Technology Officer Corey LeBlanc, Utah Bankers Association executive director Howard Headlee and Florida Bankers Association head Kathy Kraninger, who previously served as the Consumer Financial Protection Bureau’s director, as reported by American Banker on August 25, 2026.

Why smaller banks say enough is enough

The objective of the pitch is to go after lenders below the largest banks, which, in the past, have had no influence on technology suppliers. According to LeBlanc, the oligopoly that exists in core software by the companies Fiserv and FIS as well as Jack Henry, dictates the terms as major players, making smaller companies wait for years for new products. Locality Bank is five years old, but even so, it still may find itself unable to gain access to services or forced into expensive contracts, which range from seven to ten years due to the absence of scale.

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