4th September 2026
By Anjali Kochhar
A group of 21 major financial institutions, including Goldman Sachs, Bank of America and Citi, plans to establish a new company to develop and issue stablecoins, marking a major expansion of traditional finance into digital assets.
The consortium plans to launch a U.S. dollar-denominated stablecoin in the first half of 2027, subject to the formation of the new company and other closing conditions. The venture is expected to be established during the second half of 2026.
Other participants include Deutsche Bank, UBS, Santander, Wells Fargo, MUFG Bank, Fidelity Investments and Standard Bank. The group brings together institutions from North America, Europe, East Asia, the Middle East and Africa.
Joint Stablecoin to Target Payments and Digital Asset Settlement
The planned stablecoin will initially be backed to the U.S. dollar and is expected to serve wholesale, institutional and retail users. Potential applications include cross-border payments and digital asset settlement, areas where stablecoins can offer faster and more programmable transaction infrastructure.
The consortium also plans to expand beyond the dollar. It has identified stablecoins tied to other Group of Seven currencies as a longer-term objective, with a euro-denominated token listed as a priority for future development.
Banking Consortium Expands From 10 to 21 Institutions
The initiative builds on a project first announced in October 2025, when 10 banks began exploring a reserve-backed digital payment asset that could operate on public blockchains. The group has since grown to 21 institutions, reflecting the broader financial industry’s increasing interest in blockchain-based settlement systems.
Regulation is also central to the project. The consortium said it intends to comply with the U.S. GENIUS Act and, where applicable, the European Union’s Markets in Crypto-Assets (MiCA) framework. The development comes as clearer regulatory rules encourage banks and other financial companies to explore stablecoin-based payments and settlement.
Bank-Backed Stablecoin Could Challenge Tether and Circle
The move also puts the banking consortium in direct competition with established stablecoin issuers such as Tether and Circle. The stablecoin market has expanded significantly, with the overall sector’s market capitalization reaching about $303 billion, according to data cited by CoinDesk. Tether’s USDT remains the largest stablecoin, while Circle’s USDC holds the second-largest position.
The growing involvement of major banks signals a shift in how traditional financial institutions view stablecoins. Rather than treating them solely as cryptocurrency products, banks are increasingly exploring them as infrastructure for payments, settlement and digital financial markets.
If launched as planned, the consortium’s stablecoin could become one of the most significant bank-backed digital currency initiatives yet, potentially reshaping competition between traditional financial institutions and established crypto-native issuers.
