Goldman Sachs, Bank of America, Citigroup, and 18 other financial institutions plan to create a company this year to issue a dollar stablecoin in the first half of 2027, according to Reuters.
The group has grown from 10 banks when first announced in October 2025, and it now plans to expand into other G7 currencies, with the euro as a priority.
The project includes major US banks, European lenders, Japan’s MUFG Bank, South Africa’s Standard Bank, and Middle East investor Sirius International Holding.
The venture is aimed first at a US dollar token, but its backers say use cases could include wholesale, institutional, and retail markets.
Banks are defending payments and deposits
Stablecoins are digital tokens pegged to currencies, and banks see them as both a payment tool and a threat to traditional deposits.
The Wall Street Journal reported that the coming effort is focused on commercial clients, though use cases could vary by region and include retail markets, including cross-border transactions.
Bank executives have grown more defensive as stablecoins move from crypto trading into mainstream payment discussions.
The risk is direct for lenders, because deposits fund lending and help anchor customer relationships.
Bank of America CEO Brian Moynihan warned in January that roughly 30% to 35% of US commercial bank deposits, as much as $6T, could migrate into stablecoins, according to Banking Dive.
"While we have no plans to issue a stablecoin."
JPMorgan spokeswoman, The Wall Street Journal.
JPMorgan Chase is notably absent from the consortium, though it has evaluated a stablecoin and already operates JPM Coin and its own blockchain.
Regulation opened the door
The launch window lines up with the expected Jan. 18, 2027 effective date of the GENIUS Act. The law created a federal framework for payment stablecoins and helped give regulated banks a clearer route into the market.
Forkast reported that the GENIUS Act requires 1-to-1 reserve backing and limits who can issue payment stablecoins, reshaping the competitive field.
That structure may favor large banks, which already compete on compliance, governance, distribution, and risk management.
The market is still crowded. Tether says it has issued more than $180B of its dollar-pegged token, while Societe Generale’s bank-issued dollar stablecoin has just $12.5M in circulation.
The bank consortium will also face Open USD, backed by roughly 140 organizations, and Qivalis, a 37-member group targeting a euro stablecoin.
The stablecoin fight is shifting from permission to distribution. Banks can issue their own tokens, but the real test is whether they can build liquidity before customer dollars migrate to crypto-native rivals.
