Author: Claude, Shenchao TechFlow
DeepOcean Summary: On September 1, 21 traditional financial giants—including Goldman Sachs, Bank of America, and Citibank—united in an unprecedented move to announce the launch of a USD stablecoin by 2027. Immediately after the announcement, Circle’s stock price dropped 6.35%. However, can Wall Street’s “established forces” truly shake the entrenched crypto-native market? Recall Société Générale’s high-profile entry: its USDCV token has been live for nearly a year, yet its circulating supply remains a meager $12.6 million. Faced with the crypto market’s high barriers and intense competition over compliance nodes, this seemingly stellar financial alliance may prove to be all noise and little substance.
Twenty-one institutions have teamed up to issue a token—why is JPMorgan missing?
On September 1, a joint statement released by Brunswick Group sent ripples through both traditional finance and the crypto world: 21 leading financial institutions have decided to collaborate on plans to establish a joint venture dedicated to issuing stablecoins in the second half of 2026.
According to the current roadmap, the alliance’s first product will be a USD-stablecoin slated for release in the first half of 2027, followed by expansion into other G7 currencies such as the euro, targeting the cross-border payments and digital asset settlement markets. Notably absent from this list of giants spanning five regions—including Goldman Sachs, Citi, UBS, and Deutsche Bank—is JPMorgan, the king of Wall Street. Given that JPM Coin has already been successfully deployed within its internal settlement network, JPMorgan clearly has no intention of sharing its pie with this large consortium.
Targeting "Interest-Free Capital": The Stablecoin Money Printer That Wall Street Envy
Why are traditional giants forming alliances so密集ly now? The answer lies in the terrifying balance sheets of Tether and Circle.
In the current stablecoin business model, issuers accept users' fiat currency as reserves and invest it in high-yield U.S. Treasury markets, yet pay almost no interest to stablecoin holders. This “legally prohibited interest-bearing money” has, in today’s high-interest environment, evolved into a risk-free printing press generating astonishing profits. Watching stablecoin issuers earn net profits surpassing those of many Wall Street investment banks with minimal staff, these 21 financial giants can no longer stand idly by—they are seeking alliances to seize this most lucrative profit center.
A grim warning: Can a compliance alliance shake the entrenched native exchanges?
However, entering with the Wall Street spotlight—does that guarantee liquidity in the crypto market?
Reviewing the first performance report of "bank-backed stablecoins," the reality is stark. Previously, Société Générale proudly launched its stablecoin, USDCV. Despite the backing of one of Europe’s top banks, nearly a year after its launch, its circulating supply has dwindled to a mere $12.6 million. Among crypto-native users, Tether (USDT) and Circle (USDC) have already established deeply entrenched liquidity moats. Faced with the inertia of DeFi protocol integrations and the dominance of trading pairs on exchanges, Wall Street-issued compliant stablecoins that offer nothing beyond “more compliance” are highly likely to become mere internal settlement tools for traditional institutions.
Deadline: July 2028 — The Final Window Before the Great Reset
The alliance does not have much time left. According to the current regulatory countdown, July 18, 2028, will be a critical deadline for U.S. platforms to centrally settle a batch of non-compliant stablecoins.
From a dismal debut of $12.6 million to a massive stablecoin market exceeding $100 billion, what lies in between is not only the regulatory milestone of July 2028, but also a direct confrontation between traditional finance and native Web3 capital. When the 21 major players finally launch their products in 2027, they will face a saturated market where liquidity is already heavily concentrated among established native giants. Will this powerful alliance become the game-changer that reshapes the stablecoin landscape—or just another traditional finance experiment that fails to adapt? The market will soon provide the answer.