Banking giants join forces to launch global stablecoin

Twenty-one of the world’s largest financial institutions are preparing to establish a new stablecoin company, marking one of the banking industry’s most significant attempts yet to compete for a role in the rapidly expanding market for blockchain-based money.

Banking giants join forces to launch global stablecoin

The group, which includes Bank of America, Citi, Goldman Sachs, Lloyds Banking Group, MUFG, Santander, UBS, BBVA and Wells Fargo, plans to establish the as-yet-unnamed venture during the second half of 2026, subject to closing conditions.

Its first product is expected to be a US dollar-denominated stablecoin, with a commercial launch targeted for the first half of 2027. The consortium subsequently intends to explore stablecoins denominated in other G7 currencies, with the euro identified as its next priority.

Banks move from experimentation to issuance

The initiative represents a significant expansion of a project first disclosed in October 2025, when ten banks said they were examining the creation of 1:1 reserve-backed digital money capable of operating across public blockchains.

The enlarged group now spans North America, Europe, Asia, the Middle East and Africa. New participants include Capital One, BBVA, Commerzbank, Crédit Agricole, Fidelity Investments, Lloyds, PNC Financial Services, Rabobank, Scotiabank, Standard Bank, Wells Fargo and WisdomTree.

Barclays and BNP Paribas, which participated in the original exploratory group, are no longer involved.

The consortium says it intends to combine blockchain-based settlement with the compliance, governance, distribution and risk-management capabilities of established financial institutions.

Stablecoins become a strategic banking issue

For banks, stablecoins are increasingly moving beyond cryptocurrency markets to become a strategic question about the future ownership of payments and deposits.

Dollar stablecoins have grown into a substantial pool of digital liquidity, dominated by specialist issuers such as Tether and Circle. Their expansion has demonstrated demand for digital money capable of moving around the clock and settling directly across blockchain networks.

That creates both an opportunity and a defensive imperative for banks. Stablecoins could improve cross-border payments, provide settlement assets for tokenised securities and enable new forms of programmable commerce.

But widespread adoption of non-bank stablecoins could also divert deposits and payment flows away from the traditional banking system.

Public blockchains widen the ambition

Significantly, the proposed currency is intended to operate on public blockchains rather than being confined to a proprietary bank network.

The consortium envisages applications spanning wholesale, institutional and retail markets, including cross-border payments and digital-asset settlement. Success will therefore depend not simply on issuing a regulated token, but on achieving sufficient interoperability, liquidity and distribution to make it useful.

Regulation will be equally important. The US is establishing a dedicated federal framework for payment stablecoins, while Europe already regulates their issuance through MiCA and continues to scrutinise the implications of globally issued digital currencies.

The arrival of a 21-member banking consortium adds another powerful contender to the market, and the question is no longer whether established banks will participate in stablecoins, but whether they can collectively create digital money with enough reach and utility to challenge the crypto-native issuers that built the market first.