Banking Giants Form Consortium for USD Stablecoin Launch by 2027

A consortium of 21 leading financial institutions has announced plans to create a USD-denominated stablecoin, with a market launch targeted for the first half of 2027. This group includes prominent names such as Bank of America, Citi, Goldman Sachs, Deutsche Bank, and UBS.

The initiative traces its origins to October 2025, when ten global systemically important banks (G-SIBs) began exploring the feasibility of a bank-issued stablecoin. The consortium has since expanded to include 17 G-SIBs and a total of 21 banks, with plans to formally establish the issuing company in the second half of 2026.

The stablecoin aims to facilitate wholesale, institutional, and retail payments, focusing particularly on cross-border transactions and digital asset settlements. The timing of this initiative coincides with the development of regulatory frameworks in the U.S. and Europe, which banks see as paving the way for compliant stablecoin issuance.

In the U.S., the GENIUS Act is progressing through legislation, potentially providing a federal framework for stablecoin regulation. Meanwhile, the EU's Markets in Crypto-Assets regulation (MiCA) is already imposing compliance requirements on digital asset issuers operating in Europe.

The consortium's strength lies in its distribution capabilities, as these banks collectively serve millions of corporate clients and manage trillions in daily payment flows. Initial customers for the stablecoin will be businesses engaged in international money transfers, with plans to expand to retail customers in the future.

As the landscape for stablecoins evolves, the banks view this venture as a necessary response to the rise of independent stablecoins that could divert deposits and transaction fees away from traditional banking systems.