Twenty-one of the world’s largest financial institutions have joined forces on a shared stablecoin project. The group, which includes Goldman Sachs, Bank of America, Citi, Deutsche Bank and UBS, aims to launch a U.S. dollar-backed stablecoin in the first half of 2027.
The financial institutions will first establish a new company in the second half of 2026. The yet-to-be-named company will operate globally and initially focus on developing a stablecoin pegged to the U.S. dollar.
The project will become one of the most extensive joint stablecoin initiatives launched by traditional financial institutions. The new asset is expected to be used across several areas, ranging from cross-border payments to digital asset settlement.
Which companies are involved in the stablecoin project?
The North American participants include Bank of America, Capital One, Citi, Fidelity Investments, Goldman Sachs, PNC Financial Services, Scotiabank, TD Bank Group, Wells Fargo and WisdomTree.
European participants include Santander, BBVA, Commerzbank, Crédit Agricole, Deutsche Bank, Lloyds Banking Group, Rabobank and UBS. MUFG Bank, Sirius International Holding and Standard Bank complete the group of 21 institutions.
The project was first announced in October 2025. At the time, only 10 banks were exploring a digital currency model that could operate on public blockchains and be backed 1:1 by reserves.
Around one year later, the number of participants has increased to 21. The latest announcement indicates that the project has moved beyond the research stage and into company formation and product development.
Where will the new stablecoin be used?
The group does not plan to limit the stablecoin to cryptocurrency transactions. The product will be developed for wholesale financial markets, institutional clients and retail users in eligible jurisdictions.
Cross-border payments and digital asset settlement are among the main use cases. Participating institutions will bring their own distribution networks, risk management systems and financial compliance infrastructure to the joint project.
The stablecoin project is expected to be developed in compliance with the GENIUS Act in the United States and MiCA regulations in the European Union. However, the group has not yet disclosed which blockchains the token will operate on or how its reserve structure will be designed.
Euro stablecoin could follow the dollar
The joint company’s first product will be pegged to the U.S. dollar. The group is considering launching stablecoins linked to other G7 currencies at a later stage.
The euro is expected to be the first currency considered for this expansion. Over time, the initiative could therefore play a role not only in the dollar stablecoin market but also in bringing other major currencies onto blockchain networks.
The banks will enter a market that is already substantial in size. According to Reuters, Tether has issued more than $180 billion worth of USDT and continues to hold a dominant position in the stablecoin market.
Adoption of bank-backed stablecoins, however, remains relatively limited. The dollar stablecoin launched by Société Générale in 2025 currently has a circulating supply of around $12.5 million.
The combined distribution network of the 21 financial institutions could give the new project a different level of reach. Following the establishment of the company, further details are expected regarding the token’s name, supported blockchains and reserve mechanism.
