Some of the world’s biggest banks are joining forces to launch a U.S. dollar-backed stablecoin in the first half of 2027, taking a collective leap into a market that has largely been dominated by crypto companies.
The 21-bank consortium, including Goldman Sachs, Bank of America and Citigroup, plans to establish a new company to develop and operate the digital currency. The initiative has grown from an initial group of 10 banks, according to Reuters and The Wall Street Journal.
The stablecoin will initially target commercial customers and cross-border payments, where banks see potential to make transactions faster and more efficient. The group is also considering eventually issuing stablecoins tied to other G7 currencies, including the euro.
The move signals a significant shift in the banking industry’s approach to digital currencies. Banks have historically been cautious about stablecoins, partly because they could pull funds away from traditional deposits. But the rapid growth of the market is pushing major lenders to develop their own alternatives.
The banks’ initiative also reflects the industry’s broader interest in blockchain-based financial infrastructure. Rather than relying solely on existing crypto issuers, the participating institutions are seeking to build a shared system that keeps banks at the center of digital payments.
The consortium’s stablecoin would enter an increasingly competitive market, but the participation of 21 major financial institutions gives the project a scale rarely seen in bank-led digital-currency efforts.
For Wall Street, the project represents a bet that stablecoins can become more than a crypto trading tool — and a way for traditional banks to capture a larger role in the next generation of digital payments.