1 day ago
Banks Plan Joint Dollar Stablecoin Launch in 2027
Twenty-one financial institutions want to work together on a new digital coin.
The coin would be designed to keep the same value as one U.S. dollar.
They plan to create a company this year and release the coin in the first half of 2027.
They may later create coins linked to currencies such as the euro.
Another group of 37 institutions is working on a competing euro-linked coin.
Stablecoins are digital tokens often used to move money or trade cryptocurrencies.
Tether currently has a much larger stablecoin market presence than the bank projects described.
A stablecoin issued by Société Générale has attracted only limited use so far.
The European Central Bank president has warned that privately issued stablecoins could create financial risks.
A group of 21 financial institutions plans to create a company this year.
The company aims to issue a dollar-pegged cryptocurrency in the first half of 2027.
The group also plans to develop stablecoins linked to other G7 currencies, prioritizing the euro.
It will compete with Qivalis, a separate consortium of 37 institutions planning a euro stablecoin later this year.
Despite growing interest, bank-issued stablecoins have shown limited demand, while Tether dominates the market.
- Who
- A group of 21 financial institutions, including Goldman Sachs, Bank of America, Citigroup and Deutsche Bank.
- What
- The group plans to form a company and issue a dollar-pegged stablecoin, with possible expansion to other G7 currencies.
- Where
- The articles do not specify where the new company or stablecoin will be based.
- When
- The company is planned for this year, with the dollar stablecoin targeted for the first half of 2027; the group was first announced in October 2025.
- Why
- The institutions are pursuing blockchain-based payments amid renewed cryptocurrency interest and a goal of using blockchain in mainstream finance.
Proponents of Bank Stablecoins
Critics and Market Caution
Mainstream blockchain use
Proponents of Bank Stablecoins
The participating institutions see renewed cryptocurrency interest and blockchain technology as an opportunity for mainstream financial applications.
Critics and Market Caution
The articles say there are still few signs of demand for stablecoins issued by banks.
Competitive currency projects
Proponents of Bank Stablecoins
The group intends to issue a dollar stablecoin and expand into other G7 currencies, including the euro, to compete in digital payments and cryptocurrency markets.
Critics and Market Caution
Qivalis and other institutions are pursuing a separate euro-pegged project, while some institutions belong to both groups, potentially increasing competition and overlap.
Financial stability
Proponents of Bank Stablecoins
Stablecoins can be used to move money globally in cryptocurrency form and are intended to maintain a stable value against a national currency.
Critics and Market Caution
European Central Bank President Christine Lagarde has warned that privately issued stablecoins could pose risks to monetary policy and financial stability.
Key facts
- Planned launch
- First half of 2027
- Participating institutions
- 21 financial institutions
- Planned company
- The group intends to create it this year
- Currency focus
- The initial token would be pegged to the U.S. dollar, with the euro a priority for future expansion
- Main competitor
- Qivalis, formed by a separate consortium of 37 financial institutions
- Market leader
- Tether says it has issued more than $180 billion of its dollar-pegged token
- Bank-issued comparison
- Société Générale's dollar-backed stablecoin had $12.5 million in circulation, according to its website
Sources
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