Wall Street’s Stablecoin Push Gets Bigger as 21 Banks Join Forces

A group of 21 financial institutions, including Goldman Sachs, Bank of America, Citi and Deutsche Bank, plans to establish a company to issue a dollar-pegged stablecoin in the first half of 2027.

The banks said Tuesday that the planned venture will initially focus on a U.S. dollar stablecoin, with an expansion into other G7 currencies, including the euro, also under consideration.

The initiative marks an expansion of a banking-led stablecoin project first announced in October 2025, when 10 financial institutions were involved.

Banks Expand Stablecoin Plans

The group said the new company will develop stablecoins designed to facilitate digital payments and money transfers using blockchain technology.

The euro is expected to be a priority for expansion, reflecting growing competition among banks and financial institutions to develop regulated alternatives to stablecoins issued by crypto-native companies.

The initiative comes as banks increasingly explore blockchain infrastructure for payments and financial markets, while the broader stablecoin market continues to expand.

However, demand for bank-issued stablecoins remains uncertain.

Banks Face Competition From Existing Stablecoins

The banking consortium will compete with another group of financial institutions that has formed Qivalis, a company planning to launch a euro-pegged stablecoin later this year.

The two initiatives have some overlapping participants, including Spanish bank BBVA.

Outside the banking consortia, World Liberty Financial has also issued a dollar-pegged stablecoin.

The existing market remains heavily concentrated among established crypto-native issuers. Tether, which operates the USDT stablecoin, says more than $180 billion worth of its dollar-pegged token has been issued, with its reserves invested partly in U.S. Treasuries.

Societe Generale became the first major bank to issue a dollar-backed stablecoin through its digital-asset subsidiary last year. Its stablecoin, however, has seen limited adoption, with around $12.5 million in circulation, according to the bank's website.

Stablecoins Move Into Banking Infrastructure

The growing involvement of major banks signals a shift in how traditional financial institutions view stablecoins, from primarily a crypto-market instrument toward potential payment and settlement infrastructure.

Stablecoins are currently used extensively within cryptocurrency markets and for transferring value across borders. Banks are increasingly exploring whether similar blockchain-based instruments can support mainstream financial activity.

The projects also face regulatory and monetary-policy concerns.

European Central Bank President Christine Lagarde has warned that privately issued stablecoins could create risks for monetary policy and financial stability, adding another challenge for banks seeking to establish stablecoins across major currencies.

For the banking sector, the next stage will be whether institutional stablecoins can generate sufficient demand to compete with established tokens while meeting the regulatory and infrastructure requirements of mainstream finance.