- Twenty-one banks and asset managers committed Tuesday to form a company to issue a U.S. dollar stablecoin.
- The group is targeting a first-half 2027 launch for the dollar token and plans a euro-denominated version next.
- The consortium said the token is aimed at wholesale institutional and retail uses including cross-border payments and digital asset settlement.
A new bank stablecoin effort is taking shape as 21 major banks and asset managers said they will form a company to issue a U.S. dollar token. The group includes Goldman Sachs, Bank of America, and Citi, and its target is to bring the coin to market by the first half of 2027. According to the joint statement, the company still has no name, and its formation in the second half of 2026 remains subject to closing conditions. The project has expanded well beyond its earlier form and now spans institutions across North America, Europe, East Asia, the Middle East, and Africa.
Bank stablecoin group expands across regions
The consortium said Tuesday that 21 financial institutions are now part of the project, more than doubling from the initial 10-bank exploration first announced in October 2025. The expanded roster now covers five regions, showing a broader push by banks and asset managers to take part in the planned stablecoin company.
North America includes Goldman Sachs, Bank of America, Citi, Capital One, Fidelity Investments, PNC Financial Services, Scotiabank, TD Bank Group, Wells Fargo, and WisdomTree. Europe brings Santander, BBVA, Commerzbank, Crédit Agricole, Deutsche Bank, Lloyds Banking Group, Rabobank, and UBS. MUFG Bank, Sirius International Holding, and Standard Bank represent East Asia, the Middle East, and Africa.
Launch timeline and planned uses
The group said the company is planned for formation in the second half of 2026, subject to closing conditions. Its stated objective remains a U.S. dollar stablecoin in the market by the first half of 2027. After that, a euro-denominated version is next in line, ahead of other G7 currencies.
The planned bank stablecoin is intended for wholesale, institutional, and retail markets. The first use cases named by the consortium are cross-border payments and digital asset settlement. The venture is also designed to comply with the U.S. GENIUS Act and, where applicable, the European Union’s MiCA framework.
Bank stablecoin is not a CBDC
The source draws a clear line between this project and a central bank digital currency. A CBDC would be a direct liability of a central bank, meaning digital cash issued and backed by the Federal Reserve. This proposed token, by contrast, would be a private liability of a commercial company backed by reserves held by the banks themselves.
That distinction matters in the United States because President Donald Trump signed an executive order in January 2025 banning federal agencies from developing or issuing a CBDC. The same order explicitly directed government support toward private dollar-pegged stablecoins. In that context, the proposed bank stablecoin is presented as an alternative aligned with that policy direction rather than a substitute for a federal digital currency.
Market response and related efforts
The idea of a joint bank token predates this week’s announcement. JPMorgan, Bank of America, Citi, and Wells Fargo had been weighing a joint token since 2025, before the initial 10 institutions formally announced the effort. JPMorgan, however, is not among the 21 institutions listed in the latest group.
Other payment network efforts are also underway. In August, 39 state banking trade groups formed the BankChain Alliance to give community and regional lenders access to tokenized deposits. In June, Circle distribution partners including Visa, Mastercard, and Stripe backed Open USD, a rival stablecoin. Circle shares fell roughly 6% Tuesday as investors reacted to new bank-backed competition for USDC. Boston Consulting Group and Brunswick Group are advising the venture, though both said they have no authority to bind the consortium or its members.
Conclusion
The bank stablecoin project now brings together 21 banks and asset managers with a shared target of launching a U.S. dollar token by the first half of 2027. The company is expected to form in the second half of 2026 if closing conditions are met, and the group has already outlined cross-border payments and digital asset settlement as early uses. It has also drawn a direct distinction between its private token model and a CBDC, while positioning the venture within existing U.S. and EU regulatory frameworks. With a euro version planned after the dollar coin, the bank stablecoin initiative marks a broader coordinated push by large financial institutions.
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