Hassan Maishera
TL;DR
-
Twenty-one financial institutions plan to establish a company that will issue stablecoins for payments and digital-asset transactions.
-
Participants include Bank of America, Citi, Goldman Sachs, UBS, Wells Fargo and Deutsche Bank.
-
The venture aims to launch a U.S. dollar-backed stablecoin in the first half of 2027.
A group of 21 major financial institutions plans to create a company focused on issuing stablecoins for payments and digital-asset transactions.
The participants include Bank of America, Citi, Goldman Sachs and UBS. The still-unnamed company is expected to be established during the second half of 2026, subject to customary closing conditions, according to a press release published Tuesday.
The venture will initially focus on a U.S. dollar-denominated stablecoin, which it expects to launch during the first half of 2027.
Dollar Stablecoin Will Be First Product
The proposed stablecoin will support payments and transactions involving digital assets.
After launching the dollar-backed product, the company plans to introduce stablecoins denominated in other Group of Seven currencies. A euro-backed token is among its highest priorities.
The initiative could give banks and institutional investors access to regulated blockchain-based settlement assets backed by some of the world’s largest financial companies.
The venture originated from an initiative announced in October 2025, when 10 banks disclosed that they were exploring the creation of a digital payment asset.
The proposed asset would be backed one-to-one by reserves and made available across public blockchain networks.
Participation has since expanded to 21 financial institutions spanning North America, Europe, East Asia, the Middle East and Africa.
In addition to Bank of America, Citi, Goldman Sachs and UBS, the group includes:
-
Wells Fargo
-
Deutsche Bank
-
Santander
-
Fidelity Investments
-
MUFG Bank
-
Standard Bank
Other banks and investment firms are also participating in the project.
Venture Targets Compliance With GENIUS Act and MiCA
The group said the stablecoin business intends to comply with regulatory requirements in both the United States and Europe.
In the U.S., the venture will seek to meet the standards established by the GENIUS Act. In the European Union, it plans to operate in accordance with the Markets in Crypto-Assets regulation.
Compliance with both frameworks could allow the company to serve institutional clients across major financial markets while addressing concerns related to reserves, disclosures and consumer protection.
The initiative comes as the stablecoin sector continues to expand. The total market capitalization of stablecoins has climbed from approximately $200 billion at the beginning of 2025 to around $303 billion, according to DeFiLlama.
Dollar-backed tokens dominate the market. Tether’s USDT accounts for approximately 60% of total stablecoin capitalization, while Circle’s USDC holds a share of more than 20%.
The new bank-backed venture would therefore enter a market currently controlled by a small number of established issuers.
Circle could face increasing competitive pressure as banks, payment companies and asset managers introduce rival stablecoin networks.
The company’s shares fell sharply in June after more than 140 businesses—including Stripe, Coinbase, Visa, Mastercard and BlackRock—announced plans to launch Open USD, a stablecoin network viewed as a direct competitor to USDC.
News of another large institutional stablecoin project could add to investor concerns about USDC’s future market share.
Circle shares fell approximately 6% during Tuesday’s trading session, underperforming most other crypto-linked stocks. However, the decline cannot be attributed solely to the newly announced venture.
