21 financial institutions plan to jointly issue a US dollar-pegged stablecoin, aiming for launch in the first half of 2027
21 banks and asset management firms (including Bank of America, Citigroup, Goldman Sachs, UBS, Deutsche Bank) announced they will establish a joint venture in the second half of 2026 to issue a USD stablecoin, with a target launch in the first half of 2027, and plans to subsequently expand to other G7 currencies, starting with the euro. The announcement did not disclose the company name, shareholder structure, management team, custodian, or reserve manager. The plan is based on a statement from ten banks on October 10, 2025, regarding digital currencies backed by a 1:1 reserve; the original ten include Santander, Bank of America, Citigroup, Deutsche Bank, Goldman Sachs, MUFG, TD Bank, and UBS, which continue to participate, while Barclays and BNP Paribas are absent. New participants include Capital One, Fidelity Investments, PNC, Scotiabank, Wells Fargo, WisdomTree, BBVA, Commerzbank, Crédit Agricole, Lloyds Banking Group, Rabobank, Sirius International Holding, and Standard Bank of South Africa, with Fidelity and WisdomTree being asset management firms. The joint venture claims it will comply with the GENIUS Act and MiCA, serving wholesale, institutional, and retail markets for cross-border payments and digital asset settlement. Currently, the stablecoin market is dominated by Tether and Circle, collectively accounting for approximately 83% of supply; among the 21 institutions, six also support the shared tokenized deposit network led by the U.S. clearinghouse, with JPMorgan not included in the list.
21 major banks plan to launch a USD stablecoin in 2027, which signals growing institutional acceptance of stablecoin infrastructure and could reshape future supply competition. But the launch is far off and key details are still missing, so it doesn't change current stablecoin supply, capital flows, or risk appetite yet; short-term neutral (weak).