Twenty-one financial institutions committed to build a company that will issue a U.S. dollar stablecoin. Goldman Sachs anchors the group. Bank of America anchors the group. Citi anchors the group. The company does not have a name yet. Its formation is planned for the second half of 2026 subject to closing conditions. The banks target a market launch in the first half of 2027. Circle shares fell roughly 6% Tuesday as investors priced in new bank-backed competition for USDC. The consortium's token would be a private liability of a commercial company. The token would be backed by reserves held by the banks. The Federal Reserve would not provide the backing. President Donald Trump signed an executive order in January 2025 that banned federal agencies from developing or issuing a central bank digital currency. The order directed the government to support private dollar-pegged stablecoins instead. The group spans five regions. The banks want the token used in wholesale markets. The banks also want the token used in institutional markets. The banks also want the token used in retail markets. Cross-border payments are an initial application. Digital asset settlement is another initial application. A euro-denominated version is planned after the dollar token. Other G7 currencies would follow the euro version. The venture is designed to comply with the U.S. GENIUS Act. The venture is designed to comply with the EU MiCA framework where applicable. JPMorgan, Bank of America, Citi, and Wells Fargo had been weighing a joint token since 2025. JPMorgan is not among the 21 institutions listed for this effort. In August, 39 state banking trade groups formed the separate BankChain Alliance. BankChain Alliance aims to give community and regional lenders access to tokenized deposits. In June, Visa, Mastercard, and Stripe backed Open USD. Open USD is a rival stablecoin. Boston Consulting Group advises the venture. Brunswick Group also advises the venture. Both groups said they have no authority to bind the consortium or its members.
21 Banks Plan to Launch U.S. Dollar Stablecoin in 2027
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Summary
Token launch news: 21 major banks, including Goldman Sachs, Bank of America, and Citi, plan to issue a U.S. dollar stablecoin in early 2027. The token will be backed by bank reserves and used in wholesale, institutional, and retail sectors. Cross-border payments and digital asset settlement will be key use cases. The project aligns with the U.S. GENIUS Act and EU MiCA. A euro version will follow, then other G7 currencies.
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