21 financial institutions to launch USD stablecoin targeting Q1 2027 launch

According to Huoxing Finance, 21 banks and asset management firms—including Bank of America, Citigroup, Goldman Sachs, UBS, and Deutsche Bank—announced plans to form a joint venture in the second half of 2026 to issue a USD-backed stablecoin, targeting a launch in the first half of 2027, with future expansion planned to other G7 currencies, starting with the euro. The announcement did not disclose details such as the company name, shareholder structure, management team, custodian, or reserve manager. This initiative builds on a statement issued on October 10, 2025, by ten banks exploring a 1:1 reserve-backed digital currency. Of the original ten, eight—Santander, Bank of America, Citigroup, Deutsche Bank, Goldman Sachs, Mitsubishi UFJ, TD Bank, and UBS—continue to participate, while Barclays and BNP Paribas have opted out. New participants include Capital One, Fidelity Investments, PNC, Scotiabank, Wells Fargo, WisdomTree, BBVA, Commerzbank, Crédit Agricole, Lloyds Bank, Rabobank, Sirius International Holding under Abu Dhabi International Holdings, and Standard Bank of South Africa; Fidelity and WisdomTree are asset management firms. The joint venture stated it will comply with the GENIUS Act and MiCA regulations, serving wholesale, institutional, and retail markets for cross-border payments and digital asset settlement. Currently, the stablecoin market is dominated by Tether and Circle, which together account for approximately 83% of total supply. Additionally, six of the 21 institutions also support the shared tokenized deposit network led by the U.S. Clearing House, while JPMorgan Chase is not among the 21 participants.