Goldman Sachs, BofA Among 21 Banks Planning Joint US Dollar Stablecoin by 2027

A consortium of 21 major financial institutions, including Goldman Sachs, Bank of America, Citi, and Deutsche Bank, announced plans on Tuesday to launch a U.S. dollar-pegged stablecoin. The group intends to establish a new company this year with the goal of issuing the digital currency in the first half of 2027, according to a statement reported by Reuters.

Details of the Initiative

The group, which has more than doubled in size since it was first announced with 10 banks in October 2025, is entering the digital asset space to provide a bank-led alternative for blockchain-based transactions. Beyond the initial dollar-pegged token, the consortium aims to expand its offerings to include stablecoins backed by other G7 currencies, with the euro designated as a priority.

Stablecoins are digital tokens designed to maintain a stable value by being pegged to a reserve asset, typically a fiat currency like the U.S. dollar. They are primarily used within the cryptocurrency ecosystem to facilitate trading and transfer value, but proponents see potential for their use in the mainstream financial system.

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A Competitive and Challenging Market

The consortium will enter a competitive landscape dominated by established, non-bank issuers. The market leader is Tether, which has issued over $180 billion worth of its dollar-pegged token. The group will also compete with another bank-led initiative, Qivalis, a consortium of 37 financial institutions planning to launch a euro-pegged stablecoin later this year. Some institutions, like Spanish bank BBVA, are members of both groups.

However, the venture faces significant headwinds, primarily a lack of demonstrated demand for bank-issued stablecoins. For instance, France's Societe Generale launched a dollar-backed stablecoin last year, but the token has seen limited adoption, with only $12.5 million in circulation, according to its website. The market is also under regulatory scrutiny, with officials like European Central Bank President Christine Lagarde warning that privately issued stablecoins could pose risks to financial stability and monetary policy.