21 banks back USD stablecoin venture for global use

Twenty-one international financial institutions have agreed to establish a new company to support the issuance of a stablecoin, starting with a US dollar-denominated product.

The expanded consortium includes banks and investment groups from North America, Europe, East Asia, the Middle East and Africa. It builds on an earlier effort by a smaller group that had been examining a 1:1 reserve-backed digital payment asset for use on public blockchains.

Participants include Bank of America, Citi, Goldman Sachs, Wells Fargo, Deutsche Bank, UBS, Banco Santander, Lloyds Banking Group, Standard Bank and MUFG Bank. Others in the group are Capital One, Fidelity Investments, PNC Financial Services, Scotiabank, TD Bank Group, WisdomTree, BBVA, Commerzbank, Crédit Agricole, Rabobank and Sirius International Holding.

The proposed company is expected to operate globally and initially focus on a stablecoin pegged to the US dollar. Over time, it aims to expand issuance into other G7 currencies, with a euro-denominated offering identified as the next priority.

Broader push

The initiative reflects growing interest among established financial institutions in tokenised forms of money that can be used across digital asset markets and conventional payment flows. Stablecoins are already widely used in crypto trading and transfers, but large banks have so far taken a cautious approach as regulators in major jurisdictions develop clearer rules.

According to the group, the product is intended for wholesale, institutional and retail markets. Potential uses include cross-border payments and digital asset settlement, two areas where banks and asset managers have been testing blockchain-based systems to speed the movement of money and securities.

The venture is intended to comply with the GENIUS Act and, where applicable, the European Union's Markets in Crypto-Assets framework. That would place the plan within two of the most closely watched regulatory regimes for digital tokens linked to fiat currencies.

The banks did not disclose the new company's ownership structure or each participant's financial commitment. They also did not name the business, saying that would be announced later, and noted that its establishment remains subject to closing conditions.

From study to structure

The latest move follows an announcement last year by an initial group of 10 banks exploring the issuance of a reserve-backed form of digital money. The expansion to 21 institutions suggests broader support among large financial groups for a bank-linked alternative in a market largely led by specialist crypto companies and fintech operators.

The group's make-up gives the project reach across several of the world's main banking centres. North American institutions account for the largest share of participants, while European lenders are also strongly represented, alongside institutions from Japan, the Middle East and Africa.

For traditional banks, stablecoins present both an opportunity and a competitive challenge. A regulated token that can move across public blockchains could help them retain a role in payments and settlement as digital asset infrastructure develops, while meeting demand from institutional clients for easier movement between conventional money and tokenised assets.

At the same time, the effort shows how banks are trying to shape the market structure of digital money rather than leave it entirely to existing stablecoin issuers. By forming a separate company backed by multiple institutions, the group appears to be seeking a common platform that could achieve enough scale for use across jurisdictions and client segments.

The participants said the solution would draw on member institutions' expertise in compliance, governance, distribution and risk management. They aim to bring the stablecoin product to market in the first half of 2027.