Key facts
- Twenty-one banks and asset managers, including Goldman Sachs, Bank of America, and Citi, will form a company to issue a U.S. dollar stablecoin.
- The venture is targeting a first-half 2027 launch.
- The token will be a private liability, distinct from a central bank digital currency (CBDC).
- The initiative aims for use in wholesale, institutional, and retail markets, with initial applications in cross-border payments and digital asset settlement.
- A euro-denominated version is planned as the next currency after the U.S. dollar stablecoin.
Twenty-one of the world's largest financial institutions, including Goldman Sachs, Bank of America, and Citi, have committed to forming a company that will issue a U.S. dollar stablecoin. The venture, which does not yet have a name, is planned for formation in the second half of 2026 and aims for a first-half 2027 launch.
The consortium's token will be a private liability of a commercial company, backed by reserves held by the participating banks, distinguishing it from a central bank digital currency (CBDC). This approach aligns with U.S. policy, as President Donald Trump signed an executive order in January 2025 directing the government to back private, dollar-pegged stablecoins instead of developing a CBDC.
The group's membership spans five regions: North America, Europe, East Asia, the Middle East, and Africa. Notable participants include Capital One, Fidelity Investments, PNC Financial Services, Scotiabank, TD Bank Group, Wells Fargo, and WisdomTree from North America; Santander, BBVA, Commerzbank, Crédit Agricole, Deutsche Bank, Lloyds Banking Group, Rabobank, and UBS from Europe; and MUFG Bank, Sirius International Holding, and Standard Bank from East Asia, the Middle East, and Africa.
The banks intend for the token to be used across wholesale, institutional, and retail markets, with initial applications focused on cross-border payments and digital asset settlement. Following the U.S. dollar stablecoin, a euro-denominated version is planned, with other G7 currencies to follow. The venture is designed to comply with the U.S. GENIUS Act and the EU's MiCA framework.
This initiative builds on previous explorations, including a joint token concept weighed by JPMorgan, Bank of America, Citi, and Wells Fargo since 2025. Notably, JPMorgan is not listed among the 21 current participants. The announcement led to a roughly 6% drop in Circle's shares, as investors factored in new bank-backed competition for its USDC stablecoin. Boston Consulting Group and Brunswick Group are advising the venture.