Goldman Sachs, Bank of America, Citigroup, Deutsche Bank, and 19 other financial institutions collectively issued a statement announcing plans to issue a crypto asset pegged to the U.S. dollar in the first half of 2027.
The announcement said that the institutions plan to set up a new company in the second half of this year, which will serve as the issuer of the stablecoin. In its initial phase, the new company will focus on launching a USD-denominated stablecoin, while its long-term goal is to expand stablecoin issuance to the currencies of the other seven Group of Seven (G7) countries, with euro stablecoins prioritized.
This issuance window aligns with the U.S. S. electronic law bill (GENIUS Act), which will take effect in mid-January next year. The GENIUS Act includes provisions requiring the issuer to be prohibited from paying interest. Although this may seem unfavorable for crypto-native companies, it is actually an advantage for global banks.
The 21 participating financial institutions include:
North America: Bank of America, First Capital, Citigroup, Fidelity Investments, Goldman Sachs, PNC Financial Services, Canadian $BNS.US$ (Scotiabank), TD Bank Group, Wells Fargo, $WT.US$ (Wise Tree)
Europe: $SAN.US$ (Banco Santander), Banco Exterior de España, Deutsche Commercial Bank, Crédit Agricole, Deutsche Bank, $LYG.US$ (Lloyds) Group, Rabobank, UBS Group
East Asia: Mitsubishi UFJ Bank
Middle East: Sirius International Holdings
Africa: Standard Bank
Reportedly, this dollar stablecoin, issued in cooperation with global banks, is expected to cover a wide range of use cases across wholesale, institutional, and retail markets, including cross-border payments, digital asset settlement, and more.
The group will be competing against another stablecoin alliance made up of 37 financial institutions. That alliance has already formed a company called Qivalis, which plans to launch a euro-pegged stablecoin later this year.
The bigger issue is that the crypto market has never shown much interest in bank-backed stablecoins.
At present, the stablecoin market is still dominated by Tether (USDT.CC) headquartered in El Salvador and $Circle (CRCL.US)$, a U.S.-listed company. The USDT and USDC stablecoin issuance volumes of the two firms are $183.3B and $73.4B respectively.
$USDC
$CRCL
The announcement said that the institutions plan to set up a new company in the second half of this year, which will serve as the issuer of the stablecoin. In its initial phase, the new company will focus on launching a USD-denominated stablecoin, while its long-term goal is to expand stablecoin issuance to the currencies of the other seven Group of Seven (G7) countries, with euro stablecoins prioritized.
This issuance window aligns with the U.S. S. electronic law bill (GENIUS Act), which will take effect in mid-January next year. The GENIUS Act includes provisions requiring the issuer to be prohibited from paying interest. Although this may seem unfavorable for crypto-native companies, it is actually an advantage for global banks.
The 21 participating financial institutions include:
North America: Bank of America, First Capital, Citigroup, Fidelity Investments, Goldman Sachs, PNC Financial Services, Canadian $BNS.US$ (Scotiabank), TD Bank Group, Wells Fargo, $WT.US$ (Wise Tree)
Europe: $SAN.US$ (Banco Santander), Banco Exterior de España, Deutsche Commercial Bank, Crédit Agricole, Deutsche Bank, $LYG.US$ (Lloyds) Group, Rabobank, UBS Group
East Asia: Mitsubishi UFJ Bank
Middle East: Sirius International Holdings
Africa: Standard Bank
Reportedly, this dollar stablecoin, issued in cooperation with global banks, is expected to cover a wide range of use cases across wholesale, institutional, and retail markets, including cross-border payments, digital asset settlement, and more.
The group will be competing against another stablecoin alliance made up of 37 financial institutions. That alliance has already formed a company called Qivalis, which plans to launch a euro-pegged stablecoin later this year.
The bigger issue is that the crypto market has never shown much interest in bank-backed stablecoins.
At present, the stablecoin market is still dominated by Tether (USDT.CC) headquartered in El Salvador and $Circle (CRCL.US)$, a U.S.-listed company. The USDT and USDC stablecoin issuance volumes of the two firms are $183.3B and $73.4B respectively.
$USDC
$CRCL