A consortium of 21 financial institutions, including Goldman Sachs, Bank of America, Citi, and Deutsche Bank, plans to create a company this year to issue a cryptocurrency pegged to the dollar in the first half of 2027. According to reports from Reuters, the group announced this development on Tuesday, representing significant expansion from the 10 banks that were initially involved when the consortium was first announced in October 2025. The consortium aims to expand beyond dollar-pegged stablecoins into stablecoins pegged to other G7 currencies, with the euro identified as a priority target. By the end of 2026, the organization intends to create a distinct, independent legal entity to oversee and distribute the digital asset, with a primary focus on wholesale, institutional, and commercial clients for cross-border payments and settlements.
The renewed interest in blockchain technology stems from a rebound in crypto prices in 2024 and US President Donald Trump's support for the sector, which sparked a revival of interest in using blockchain in the mainstream financial system. As reported by Reuters, the group will compete with a separate consortium of 37 financial institutions that formed a company called Qivalis and plan to launch a euro-pegged stablecoin later this year. Notably, some institutions, including Spanish bank BBVA, are members of both groups, while President Trump's family's crypto business, World Liberty Financial, has also issued its own stablecoin. Still, there are few signs of demand for stablecoins issued by banks.
The stablecoin market remains dominated by El Salvador-based Tether, which claims to have issued more than $180 billion worth of its dollar-pegged token and has made billions in profits by investing reserves in assets including U.S. Treasuries. According to Reuters, France's Societe Generale became the first major bank to issue a dollar-backed stablecoin through its digital asset subsidiary last year, though the token has not been widely adopted with just $12.5 million in circulation. European Central Bank President Christine Lagarde has warned that privately issued stablecoins pose risks for monetary policy and financial stability.
