Goldman Sachs and Citi Among 21 Companies Issuing Stablecoin

A group of 21 major financial institutions plans to establish a new company for the development and issuance of stablecoins, marking another sign of traditional finance’s shift towards digital dollars as regulatory frameworks take shape.

The consortium, announced on Tuesday, includes Bank of America, Goldman Sachs, Citi, Deutsche Bank, UBS, Santander, MUFG, and Fidelity Investments, and plans to launch a stablecoin denominated in US dollars in the first half of 2027, subject to the establishment of the company and other conditions.

According to the announcement, the group ultimately plans to expand to stablecoins denominated in other G7 currencies, with the euro offering as the next priority.

The consortium stated that its stablecoin will target wholesale, institutional, and retail markets, including use cases such as cross-border payments and settlement of digital assets. The initiative aims to align with the US GENIUS Act and the European Union’s Markets in Crypto-Assets Regulation (MiCA), where applicable.

The venture builds on an initiative announced last October when an initial group of 10 banks stated they were exploring a form of digital money backed by reserves at a 1:1 ratio available on public blockchain networks. The consortium has since more than doubled, bringing together financial institutions from across North America, Europe, East Asia, the Middle East, and Africa.

Banks Deepen Stablecoin Initiatives

Stablecoins have significantly increased in recent years, and the passage of the GENIUS Act and MiCA has created clearer regulatory pathways for their adoption.

Outside the US and Europe, Singapore is considering allowing jointly issued cross-border stablecoins into its regulatory regime, according to Tuesday’s announcement, re-evaluating its earlier decision to limit the framework to domestic issuance.

Institutional interest has already begun to shape up by early 2025, when a Fireblocks survey conducted on 295 corporate directors showed that 90 percent of respondents use or plan to use stablecoins.

Since then, major financial institutions have expanded their presence in the sector. The crypto subsidiary of Societe Generale has issued stablecoins denominated in euros and dollars, while Fidelity recently launched its FIDD stablecoin pegged to the US dollar. SocGen’s crypto subsidiary has issued stablecoins denominated in euros and dollars.

Last month, Standard Chartered supported the venture with a stablecoin denominated in Hong Kong dollars.