Major Banks Form Coalition to Launch Stablecoin by 2027

In a notable development for the banking industry, 21 major financial institutions, including Bank of America, Citi, Goldman Sachs, and Deutsche Bank, have announced plans to establish a new company aimed at issuing a stablecoin. This initiative is expected to culminate in the launch of a dollar-backed token in the first half of 2027, with a euro version to follow.

The formation of this coalition reflects a growing recognition among banks of the need to adapt to the evolving landscape of digital currencies. The banks' interest in stablecoins comes as the market has seen significant growth, with the total supply of stablecoins increasing from $27 billion at the end of 2020 to over $300 billion today.

According to Artemis Analytics, businesses settled $226 billion in B2B payments using stablecoins last year, highlighting their rising importance in the financial ecosystem. The move by banks is partly driven by the regulatory clarity provided by the GENIUS Act, which has defined the parameters for stablecoin issuance and participation.

Experts suggest that issuing a stablecoin will allow banks to maintain control over their corporate liquidity pools and transactional fee revenues, as businesses increasingly turn to stablecoins to bypass traditional banking systems. This shift is evident in the substantial growth of stablecoin transactions, which reached $28 trillion in the first quarter of 2026.

As banks prepare to enter the stablecoin market, they are also responding to competitive pressures from established players like Tether and Circle, as well as new entrants like Visa and Google, who are backing the upcoming Open USD stablecoin.