OBL Helps Lead National Effort to Build an Industry-Owned Tokenized Deposit Network

08/26/26

The Ohio Bankers League is helping lead a major national initiative designed to ensure banks-not outside technology companies-have a central role in building the next generation of financial infrastructure. OBL, together with state bankers associations from 39 other states, is working to develop and ultimately bring to market an industry-owned, bank-governed network that can support tokenized deposits, programmable payments, automated settlement and other emerging banking capabilities.

The initiative, known as the BankChain Alliance, would establish a common banking blockchain platform available to financial institutions of all sizes. Its purpose is not simply to introduce new technology. It is to give banks a secure, interoperable foundation through which they can offer modern payment services while maintaining the regulatory standards, customer protections and trust that define the banking system.

This work is particularly important as stablecoins, fintech platforms and other nonbank payment providers seek a larger role in moving and holding customers' money. OBL believes banks must be able to compete in that evolving marketplace without becoming entirely dependent on technology controlled by outside vendors. An industry-owned network would allow banks to help determine how the infrastructure is governed, developed and deployed-and ensure that the interests of community banks are represented from the beginning.

Tokenized deposits could allow traditional bank deposits to move across modern digital infrastructure while remaining within the regulated banking system. The BankChain Alliance is being designed to give participating banks access to those capabilities through shared infrastructure, rather than requiring each institution to independently develop or purchase an entirely new platform. That shared approach could reduce barriers to entry and help ensure that innovation is not limited to the nation's largest financial institutions.

OBL's involvement reflects a broader advocacy priority: preserving the role of banks as the trusted foundation of the payments system. Deposits held at local banks support lending to Ohio families, farms and businesses. As payment technology changes, it is essential that innovation strengthens that relationship rather than moving deposits and economic activity outside the regulated banking system.

"This initiative gives Ohio banks an opportunity to help shape the future rather than simply react to technology developed by others," said OBL President and CEO Michael Adelman. "By working collaboratively with bankers associations across the country, we can build infrastructure that is secure, competitive and accessible to institutions of every size. Most importantly, we can help ensure that innovation continues to support local lending and the communities our banks serve."

The BankChain Alliance will be guided by principles of security, fairness, interoperability, collaboration and broad industry participation. Significant development work remains ahead, and OBL will continue to keep members informed as the network's governance, technology and opportunities for bank participation take shape. If you have any questions please contact Evan Kleymeyer.

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