Global banks move into blockchain with stablecoin backed by 21 financial giants

Traditional banking is moving deeper into the stablecoin market. A consortium of 21 international banks has confirmed plans to create a company dedicated to issuing its own digital currencies.

The first stablecoin would be denominated in U.S. dollars and is scheduled for launch in the first half of 2027. The joint company is expected to be formally established during the second half of this year. The plan later calls for a second stablecoin linked to another G7 currency, with the euro identified as the priority.

Stablecoins are cryptocurrencies designed to track a stable asset, most commonly the U.S. dollar at a one-to-one ratio. Unlike Bitcoin, whose value can change sharply within hours, they aim to provide predictability. In practice, they function as digital dollars that users can store in virtual wallets and send worldwide without directly relying on the traditional banking system.

The initiative began in October 2025, when 10 banks started examining its technical and regulatory feasibility. The group has since grown to 21 members. Its participants span North America, Europe, Asia and Africa, including Bank of America, Citi, Goldman Sachs, Wells Fargo, Santander, BBVA, Deutsche Bank, UBS, MUFG Bank and Standard Bank.

The banks said the infrastructure would seek to comply with the United States’ GENIUS Act and the European Union’s MiCA framework. The stablecoin is intended for institutional payments, settlement of digital-asset transactions and everyday retail use. The project joins a market dominated by Tether’s USDT and Circle’s USDC, as traditional banks seek to compete at scale. A separate consortium of 140 companies, including Visa, Mastercard and Google, has announced Open USD, while 37 European entities are advancing a similar project called Qivalis.