Goldman Sachs, Bank of America, Citi, and Deutsche Bank are among the 21 international financial institutions that have formally declared plans to form a joint venture to produce a stablecoin tied to the US dollar in the first half of 2027.
By the end of 2026, the organisation intends to create a distinct, independent legal entity to oversee and distribute the digital asset, with a primary focus on wholesale, institutional, and commercial clients for cross-border payments and settlements, according to a report by Reuters.
The organisation, which was initially launched in October 2025 when only ten banks were engaged, said in a statement that it also intends to grow into stablecoins that are pegged to other G7 currencies, with the euro being a top priority.
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Stablecoins are mostly utilised in cryptocurrency trading and are used to transfer money globally. However, the idea of implementing blockchain in the mainstream financial system saw a resurgence in attention in 2024 due to a recovery in cryptocurrency values and US President Donald Trump's backing for the industry.
The organisation will face competition from a different group of 37 financial institutions that established a business named Qivalis and announced plans to introduce a stablecoin that is tethered to the euro later this year. Some belong to both groups, such as the Spanish bank BBVA, which opens a new tab. World Liberty Financial, the cryptocurrency company owned by President Trump's family, has also released a stablecoin of its own.
Nevertheless, there aren't many indications of demand for bank-issued stablecoins.
El Salvador-based Tether, which claims to have issued more than $180 billion worth of its dollar-pegged token and gained billions in profits by investing the reserves in assets like US Treasuries, dominates the stablecoin market.
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Last year, Societe Generale of France, which is not a member of either consortium, became the first big bank to issue a stablecoin backed by dollars through its digital asset business. According to its website, there are just $12.5 million in circulation, indicating that the token has not been extensively used.
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