Consortium of 21 Global Banks Plans Dollar Stablecoin Launch in 2027
A coalition of 21 major financial institutions, including Goldman Sachs, Bank of America, Citi, and Deutsche Bank, announced plans to establish a new company in 2026 to issue a dollar-pegged stablecoin, with a target launch in the first half of 2027. The group, which was first unveiled in October 2025 with just 10 banks, said in a statement that it will initially focus on a USD stablecoin before expanding to other G7 currencies, with the euro as a priority.
The yet-unnamed venture will operate globally and will issue a 1:1 reserve-backed token on public blockchains, according to the announcement. The stablecoin is intended for wholesale, institutional, and retail use cases, including cross-border payments and digital asset settlements.
The consortium spans multiple regions. North American members include Bank of America, Capital One, Citi, Fidelity Investments, Goldman Sachs, PNC Financial Services, Scotiabank, TD Bank Group, Wells Fargo, and WisdomTree. European participants are Banco Santander, BBVA, Commerzbank, Credit Agricole, Deutsche Bank, Lloyds Banking Group, Rabobank, and UBS. The group also includes MUFG Bank in East Asia, Sirius International Holding in the Middle East, and Standard Bank in Africa.
This initiative positions the banks to compete directly with established players in the stablecoin market, which has seen surging interest from traditional financial institutions.
Competitive Landscape and Market Context
The banks' move comes as stablecoins—cryptocurrencies designed to maintain a stable value, typically pegged to a fiat currency like the dollar—have become a focal point for financial innovation. Stablecoins are primarily used for moving money globally in the form of cryptocurrency and are most commonly utilized in crypto trading.
A rebound in crypto prices in 2024 and US President Donald Trump's support for the sector have sparked renewed interest in using blockchain technology within mainstream finance, according to reports from The Straits Times and The Star. The group will face competition from a separate consortium of 37 financial institutions that formed a company called Qivalis to launch a euro-pegged stablecoin later this year. Notably, some institutions, including Spain's BBVA, are members of both consortia.
President Trump's family crypto business, World Liberty Financial, has also issued its own stablecoin, further intensifying competition.
The stablecoin market remains dominated by El Salvador-based Tether, which reports having issued more than $180 billion worth of its dollar-pegged token. Tether has generated billions in profits by investing its reserves in assets such as US Treasuries.
Challenges and Regulatory Environment
Despite the institutional backing, there are few signs of significant demand for bank-issued stablecoins. France's Société Générale, which is not a member of either consortium, became the first major bank to issue a dollar-backed stablecoin through its digital asset subsidiary in 2025. However, the token has not achieved widespread adoption, with just $12.5 million in circulation, according to its website.
European Central Bank President Christine Lagarde has warned that privately issued stablecoins pose risks to monetary policy and financial stability, a caution that may shape the regulatory landscape. The new venture is expected to operate in compliance with existing regulations, including the US GENIUS Act and the EU's Markets in Crypto-Assets (MiCA) framework, according to CoinGape.
As banks increasingly seek to establish a foothold in the digital asset space, the stability of the fiat system is being tested by the growing influence of these private digital currencies. The combined efforts of these 21 institutions could significantly alter the competitive dynamics of the stablecoin market, which is increasingly scrutinized by regulators globally.