A group of 21 major financial institutions is preparing to establish a new company focused on developing and issuing stablecoins. The move highlights the growing involvement of traditional finance in digital currencies as regulatory frameworks become clearer in major markets.
The consortium includes Bank of America, Goldman Sachs, Citi, Deutsche Bank, UBS, Santander, MUFG and Fidelity Investments, among other institutions.
According to the announcement on Tuesday, the group plans to launch a US dollar-denominated stablecoin during the first half of 2027. However, the launch remains subject to the successful formation of the new company and other required conditions.
Euro Stablecoin Could Follow
The US dollar stablecoin will be the consortium’s first priority. However, the group also intends to expand into stablecoins backed by other G7 currencies.
A euro-denominated stablecoin is expected to be the next major offering as the initiative expands beyond the US dollar market.
This approach could eventually give institutions and consumers access to regulated digital currencies linked to several of the world’s largest fiat currencies.
Stablecoin Designed for Payments and Settlement
The proposed stablecoin is expected to serve wholesale, institutional and retail markets.
Potential use cases include cross-border payments, digital asset settlement and other blockchain-based financial transactions.
The consortium also intends to structure the project in accordance with major regulatory frameworks. These include the US GENIUS Act and the European Union’s Markets in Crypto-Assets Regulation, commonly known as MiCA, where applicable.
Regulatory compliance could become an important advantage as banks and financial institutions increase their participation in the stablecoin sector.
Consortium Has More Than Doubled in Size
The project builds on an initiative first announced in October, when 10 banks revealed that they were exploring a form of digital money backed by reserves on a 1:1 basis.
The proposed digital currency would also be available on public blockchains.
Since then, the consortium has expanded significantly. It now includes 21 financial institutions across North America, Europe, East Asia, the Middle East and Africa.
The rapid expansion suggests that interest in regulated blockchain-based payment systems is growing across the global banking industry.
Banks Increase Their Stablecoin Activity
Stablecoin adoption has accelerated in recent years as governments introduce clearer rules for digital assets.
In the United States, the GENIUS Act has provided a more defined regulatory pathway for stablecoins. Meanwhile, Europe’s MiCA framework has established rules governing crypto assets and stablecoin issuers across the European Union.
Other financial hubs are also reviewing their policies.
Singapore, for example, is considering allowing jointly issued cross-border stablecoins under its regulatory framework. The proposal would mark a change from its previous approach, which focused more heavily on domestic issuance.
Institutional Stablecoin Demand Continues to Grow
Institutional interest in stablecoins had already become clear by early 2025.
A Fireblocks survey involving 295 executives found that 90% of respondents were either already using stablecoins or planning to use them.
Since then, several major financial institutions have expanded their involvement in the sector.
Societe Generale’s crypto subsidiary has introduced stablecoins denominated in both euros and US dollars. Fidelity has also launched FIDD, its US dollar-pegged stablecoin.
Meanwhile, Standard Chartered recently backed a Hong Kong dollar stablecoin venture.
The growing number of bank-led stablecoin projects suggests that traditional financial institutions increasingly see blockchain-based currencies as an important part of the future payments and digital asset infrastructure.
