BofA, Citi, Goldman Sachs among 21 institutions planning stablecoin launch

Consortium Composition and Plans

Announced on Tuesday, the consortium comprises leading financial institutions including Bank of America, Goldman Sachs, Citi, Deutsche Bank, UBS, Santander, MUFG, and Fidelity Investments. Their goal is to launch a US dollar-denominated stablecoin in the first half of 2027, contingent upon company formation and other conditions.

The group plans to extend its stablecoin offerings to other G7 currencies in the future, with a euro-denominated stablecoin identified as the next priority.

The stablecoin aims to serve wholesale, institutional, and retail markets, focusing on use cases like cross-border payments and digital asset settlement. The initiative intends to comply with the US GENIUS Act and the EU’s Markets in Crypto-Assets Regulation (MiCA) where applicable.

Background and Consortium Growth

This venture builds upon an initiative launched in October last year, when an initial group of 10 banks began exploring a 1:1 reserve-backed digital currency available on public blockchains. The consortium has since more than doubled in size, bringing together institutions from North America, Europe, East Asia, the Middle East, and Africa.

This expansion reflects growing institutional interest in stablecoins as regulatory frameworks become clearer and adoption accelerates.

Regulatory Context and Market Trends

Stablecoins have seen considerable growth recently, supported by legislation such as the GENIUS Act in the US and MiCA in the EU, which provide clearer regulatory clarity for their use.

Singapore is also reconsidering its stance by potentially allowing jointly issued cross-border stablecoins within its regulatory framework, revisiting earlier restrictions limiting issuance to domestic entities.

A Fireblocks survey from early 2025 found that 90% of 295 executives polled were either using or planning to use stablecoins in their operations.

Institutional Expansion into Stablecoins

In recent months, major financial institutions have increased their stake in the stablecoin market. Societe Generale’s crypto subsidiary has issued euro- and dollar-denominated stablecoins, Fidelity launched its US dollar-pegged FIDD stablecoin, and Standard Chartered supported a Hong Kong dollar stablecoin project.

These movements, along with the consortium's formation, indicate a deepening integration between traditional finance and digital asset technologies.