Key facts
- 21 financial institutions, including Goldman Sachs, Bank of America, and Citi, plan to launch a U.S. dollar-denominated stablecoin.
- The stablecoin is targeted for launch in the first half of 2027.
- The consortium plans to expand to other G7 currencies, prioritizing a euro offering.
- The venture aims to comply with US and EU crypto regulations.
- The initiative builds on a previous exploration by 10 banks last October.
A consortium of 21 major financial institutions, including Goldman Sachs, Bank of America, Citi, Deutsche Bank, UBS, Santander, MUFG Bank, and Fidelity Investments, has announced plans to establish a new company to develop and issue stablecoins. The group aims to launch a U.S. dollar-denominated stablecoin in the first half of 2027, subject to regulatory approvals and company formation. This initiative signifies a growing push by traditional finance into digital currencies, with plans to eventually expand to other G7 currencies, starting with the euro.
The venture targets wholesale, institutional, and retail markets, with potential use cases in cross-border payments and digital asset settlement. It is designed to comply with regulations such as the US GENIUS Act and the EU's Markets in Crypto-Assets Regulation (MiCA). This effort builds upon an earlier initiative from October where 10 banks explored similar digital money concepts. The consortium has since more than doubled in size, encompassing institutions from North America, Europe, East Asia, the Middle East, and Africa.
This move occurs as stablecoins gain traction, with regulatory clarity emerging. Singapore is also considering allowing jointly issued cross-border stablecoins. Other financial entities, such as Societe Generale and Standard Chartered, have also been active in the stablecoin space. However, European Central Bank President Christine Lagarde has previously cautioned about the potential risks privately issued stablecoins could pose to monetary policy and financial stability.