Crypto01 September, 20262 min read
Goldman Sachs, Bank of America, Citi Join 21 Banks Planning Dollar-Backed Stablecoin Launch in 2027
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
A group of 21 banks will form a company to issue dollar-backed stablecoin in 2027. Initial focus on a US dollar stablecoin, with expansion to euro-denominated later.
Banks eye dollar stablecoin
A consortium of 21 financial institutions, including Goldman Sachs, Bank of America and Citi, plans to form a shared company to issue a dollar-backed stablecoin with a market launch targeted for the first half of 2027. The group says it intends to establish a new company in the second half of 2026 to serve as the issuing entity, and it plans to begin with a single US-dollar stablecoin. The initiative is designed to serve wholesale, institutional and retail markets, including use cases such as cross-border payments and digital asset settlement.
The consortium also says it will comply with the US GENIUS Act and the European Union’s Markets in Crypto-Assets Regulation (MiCA), where applicable. The plan builds on an October 2025 announcement in which an initial group of 10 banks said they were exploring a 1:1 reserve-backed digital currency that could operate across public blockchains.
Regulation and market pressure
The stablecoin launch is framed as part of a broader regulatory shift, with the consortium pointing to the US GENIUS Act taking effect in mid-January 2027 and MiCA compliance where applicable. One restriction highlighted in the coverage is that the GENIUS Act prohibits stablecoin issuers from paying interest to holders, a rule described as a structural advantage for global banks. The consortium’s plan also faces competition from another alliance of 37 financial institutions that has already formed a company called Qivalis and plans to launch a euro-pegged stablecoin later this year.
Market context in the reporting emphasizes that Tether dominates the stablecoin market, with circulating supply figures cited for USDT and Circle’s USDC. The reporting also notes that JPMorgan Chase signaled it could launch its own stablecoin and said it would "evaluate all options" based on customer demand and regulatory developments.
Who’s in, what’s at stake
The participating institutions named across the coverage include Bank of America, Goldman Sachs, Citi, Deutsche Bank, UBS, Santander, MUFG and Fidelity Investments, alongside other banks listed in the coalition. The venture is described as initially targeting wholesale, institutional and retail markets, while later phases aim to expand issuance to other G7 currencies with a euro offering identified as the next priority. The reporting also ties the consortium’s approach to a shift toward public blockchains, described as a departure from earlier bank strategies that relied on private, permissioned ledgers.
In the same coverage, the stablecoin market is described as standing at roughly $308 billion, while tokenized deposits are described as tied to a bank's balance sheet and carrying deposit insurance. Regulatory risk is also raised in the coverage through Christine Lagarde, president of the European Central Bank, warning that privately issued stablecoins could pose risks to monetary policy and financial stability.