Key facts
- 21 financial institutions, including Goldman Sachs, Bank of America, and Citi, plan to issue a dollar-pegged stablecoin.
- The company to issue the stablecoin is expected to be created this year.
- The stablecoin launch is targeted for the first half of 2027.
- The group also plans to issue stablecoins pegged to other G7 currencies, with the euro as a priority.
- The consortium will compete with another group planning a euro-pegged stablecoin.
A group of 21 financial institutions, including major players like Goldman Sachs, Bank of America, Citi, and Deutsche Bank, have announced their intention to establish a new company this year. This entity is slated to issue a cryptocurrency pegged to the U.S. dollar, with a target launch in the first half of 2027. The consortium also aims to broaden its offerings to include stablecoins linked to other G7 currencies, with a particular focus on the euro.
The initiative emerges amid a renewed interest in blockchain technology within the mainstream financial system, partly fueled by a rebound in crypto prices in 2024 and support from U.S. President Donald Trump for the sector. This group will operate in a competitive landscape, facing a separate consortium of 37 financial institutions that has formed a company called Qivalis and plans to launch a euro-pegged stablecoin later this year. Some banks, such as Spanish bank BBVA, are participating in both groups.
Despite the growing interest and these planned initiatives, there are currently few indications of significant demand for bank-issued stablecoins. The market remains largely dominated by Tether, which has issued over $180 billion worth of its dollar-pegged token. Societe Generale, a major bank not part of either new consortium, issued a dollar-backed stablecoin last year through its digital asset subsidiary, but it has seen limited adoption with only $12.5 million in circulation. European Central Bank President Christine Lagarde has previously voiced concerns, warning that privately issued stablecoins could pose risks to monetary policy and financial stability.