A consortium of twenty-one financial institutions is planning to launch a U.S. dollar stablecoin by the first half of 2027. The initiative aims to create a private liability token backed by reserves held by the participating banks, distinct from a central bank digital currency (CBDC).
The formation of the company that may issue the stablecoin is anticipated for the second half of 2026. This venture is designed to comply with both the U.S. GENIUS Act and the EU’s MiCA framework. Anchoring institutions include Goldman Sachs, Bank of America, and Citi, according to a joint statement.
The stablecoin is intended to be a private liability of a commercial company, with its backing derived from reserves held by the banks. This approach explicitly excludes the Federal Reserve’s balance sheet, positioning it as an alternative to a CBDC. This direction aligns with a U.S. executive order signed in January 2025 by President Donald Trump, which banned federal agencies from developing or issuing a CBDC and instead directed the government to support private, dollar-pegged stablecoins.
The participating institutions represent a global reach, with banks from North America, Europe, East Asia, the Middle East, and Africa. The North American contingent includes Capital One, Fidelity Investments, PNC Financial Services, Scotiabank, TD Bank Group, Wells Fargo, and WisdomTree. European participants comprise Santander, BBVA, Commerzbank, Crédit Agricole, Deutsche Bank, Lloyds Banking Group, Rabobank, and UBS. MUFG Bank, Sirius International Holding, and Standard Bank represent East Asia, the Middle East, and Africa.
Boston Consulting Group and Brunswick Group are providing advisory services for the venture. The banks aim for the token to be utilized across wholesale, institutional, and retail markets, with initial applications focused on cross-border payments and digital asset settlement. Following the U.S. dollar stablecoin, a euro-denominated version is planned, with other G7 currencies to follow.
This initiative is not the first exploration of a joint token by major banks; JPMorgan, Bank of America, Citi, and Wells Fargo had reportedly been considering a similar venture since 2025. Notably, JPMorgan is not listed among the twenty-one participants in this latest announcement. The formation of the company is subject to closing conditions.
The stablecoin initiative operates within a landscape that includes other banking alliances and private stablecoin projects. For instance, 39 state banking trade groups formed the BankChain Alliance to provide community and regional lenders access to tokenized deposits. Additionally, Circle’s distribution partners, including Visa, Mastercard, and Stripe, have backed Open USD, a competing stablecoin.
The company that may issue the stablecoin has not yet been named.
Broader Context
Source materials place the factual news in this context: Goldman Sachs, Bank of America, and Citi anchor the group, according to a joint statement.
Why This Matters
This initiative represents a significant move by major financial institutions to create a private stablecoin, aligning with U.S. regulatory signals that favor such private digital currencies over central bank digital currencies (CBDCs). The planned compliance with both U.S. GENIUS Act and EU’s MiCA framework suggests an intent for broad regulatory acceptance and market integration across wholesale, institutional, and retail sectors, with initial applications targeting cross-border payments and digital asset settlement.
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