A group of twenty-one financial institutions, including Goldman Sachs, Bank of America, Citi, and Deutsche Bank, announced on Tuesday that they intend to establish a company this year to issue a cryptocurrency pegged to the dollar in the first half of 2027.
The organization, which was initially launched in October 2025 when only ten banks were engaged, stated 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.
Stablecoins are mostly utilized 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 U.S. President Donald Trump’s backing for the industry.
The organization 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. 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, including U.S. Treasuries.
Last year, Societe Generale of France became the first large bank to launch a dollar-backed stablecoin through its digital asset division. This new tab is not part of any consortium.
According to its website, there are just $12.5 million in circulation, indicating that the token has not been extensively used.
Christine Lagarde, the president of the European Central Bank, has cautioned that monetary policy and financial stability are at risk from privately created stablecoins.
