39 US banking associations build industry-owned blockchain network

The US banking industry has witnessed an unprecedented alliance: 39 state bankers associations joining forces to build a private blockchain network owned and operated by the industry itself. This move is not only the clearest signal yet that blockchain has transitioned from “technology experimentation” to “production infrastructure,” but also raises significant questions for other financial markets, including Vietnam and Japan.

The largest alliance in US banking history

According to PYMNTS, 39 State Bankers Associations have announced plans to collaboratively build a shared blockchain network owned by the banking industry. This is the first time such a broad alliance has collectively invested in distributed ledger technology (DLT) infrastructure, rather than relying on public platforms like Ethereum or private solutions from individual banks.

The scale of this alliance is noteworthy: 39 states representing thousands of community and regional banks — organizations that make up the majority of the US financial system but have often been left behind in the technology race compared to megabanks (JPMorgan Chase, Bank of America, Goldman Sachs).

Why blockchain, why now?

Three main drivers are behind this decision:

First, interbank payment costs. The traditional correspondent banking system remains expensive and slow, especially for cross-border transactions. Blockchain can reduce settlement time from T+2 to T+0 while cutting intermediary fees.

Second, competitive pressure from fintech. Companies like Stripe, Ripple, and Circle have built payment infrastructure on blockchain, threatening the intermediary position of traditional banks. By building their own network, banks want to maintain control of infrastructure rather than depend on competitors.

Third, regulatory compliance requirements. Public blockchains (Ethereum, Solana) struggle to meet KYC/AML requirements and data sovereignty. An industry-owned private network allows customization of governance, audit trails, and integration with legacy systems (core banking, SWIFT).

The “industry-owned” model — different from previous projects

The unique aspect of this project is the collective ownership model. Instead of a technology company operating it (like RippleNet or JPMorgan’s Onyx), this blockchain network will be owned by the banks themselves through a consortium or cooperative structure.

Similar models have succeeded in other industries: Visa (owned by member banks), SWIFT (cooperative of 3,500+ financial institutions), and FedNow (Federal Reserve’s real-time payment infrastructure). The banking blockchain network could be the next step in this logic.

Lessons for Vietnam and Japan

Vietnam: The State Bank of Vietnam is piloting fintech and blockchain sandboxes, but primarily focused on crypto assets and DeFi. The US project shows blockchain has practical applications in traditional banking infrastructure (interbank settlement, trade finance, KYC sharing). Vietnamese banks (Vietcombank, BIDV, Techcombank) should study similar consortium blockchain models, especially for international payments and trade finance.

Japan: Japan has been ahead with Project JBAIT (Japan Bankers Association Innovation Team) and collaboration with Ripple for cross-border payments. However, the US 39-state model is much larger in scale and could serve as a template for Asian banking associations to learn from. MUFG, SMBC, Mizuho — Japan’s three megabanks — could consider expanding their current consortium to a regional level (ASEAN, APAC).

Challenges ahead

Not everything will go smoothly. Three major challenges:

Governance: 39 associations, thousands of banks with different sizes and needs — how to achieve consensus on protocol upgrades, fee structure, and dispute resolution?

Integration with legacy systems: Core banking systems (Fiserv, FIS, Jack Henry) were not designed for blockchain. Integration costs and time could reach hundreds of millions of USD.

Regulatory uncertainty: OCC, FDIC, Federal Reserve do not have clear frameworks for industry-owned blockchain. Will this network be considered a “systemically important financial market utility” (SFMU) and subject to special supervision?

Conclusion

The alliance of 39 US banking associations marks a turning point: blockchain is no longer technology for startups and crypto, but strategic infrastructure for traditional banking. For Vietnam and Japan, this is a reminder that the race is not about “whether to use blockchain” but “how not to be left behind.”

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Source: 39 State Bankers Groups Join Forces to Build Industry-Owned Blockchain Network — PYMNTS, August 26, 2026