A group of 21 financial institutions including Goldman Sachs, Bank of America, Citi and Deutsche Bank plan to create a company this year to issue a cryptocurrency pegged to the dollar in the first half of 2027, they said on Tuesday.
The group, which was first announced in October 2025 when just 10 banks were involved, said in a statement that it also aims to expand into stablecoins pegged to other G7 currencies, including the euro as a priority.
Group to compete with separate consortium of 37 financial institutions
Stablecoins are used to move money around the world in the form of cryptocurrency, and are mostly used in crypto trading. But a rebound in crypto prices in 2024 and US President Donald Trump's support for the sector sparked a revival of interest in the idea of using blockchain in the mainstream financial system.
The group will compete with a separate consortium of 37 financial institutions which formed a company called Qivalis and said they plan to launch a euro-pegged stablecoin later this year. Some, including Spanish bank BBVA, are members of both groups. President Trump's family's crypto business, World Liberty Financial, has also issued its own stablecoin.
Still, there are few signs of demand for stablecoins issued by banks.
The stablecoin market is dominated by El Salvador-based Tether, which says it has issued more than $180 billion worth of its dollar-pegged token and made billions in profits by investing the reserves in assets including U.S. Treasuries.
France's Societe Generale - which is not in either consortium - became the first major bank to issue a dollar-backed stablecoin through its digital asset subsidiary last year. The token has not been widely adopted, with just $12.5 million in circulation, according to its website.
European Central Bank President Christine Lagarde has warned that privately issued stablecoins pose risks for monetary policy and financial stability.
