Key facts
- Banks are accelerating plans to issue stablecoins for round-the-clock settlement.
- Many institutions are moving away from in-house stablecoin development.
- Industry consortia are being favored to reduce fragmentation and broaden distribution.
- A consortium of nine major banks, including Goldman Sachs, Bank of America, BNP Paribas, Citigroup, Deutsche Bank, MUFG Bank, and Santander, is reportedly forming.
Banks are increasingly prioritizing the development and issuance of stablecoins to facilitate instantaneous, 24/7 settlement processes. A notable trend is the shift from individual in-house builds towards collaborative efforts within industry consortia. This strategic move aims to mitigate fragmentation within the rapidly expanding stablecoin market and enhance broader distribution channels. Reports indicate that a significant consortium is forming, comprising nine major banking institutions: Goldman Sachs, Bank of America, BNP Paribas, Citigroup, Deutsche Bank, MUFG Bank, and Santander. In contrast, some institutions like SG and Standard Chartered are reportedly continuing with their own solo development paths for stablecoins.